Korean diversified company Hanwha Solutions Corp (KRX:009830) on Thursday reported record-breaking growth in 2022 for the Qcells-led renewable energy division, with sales jumping 56% on the year.
The Seoul-based company, which also runs chemical and advanced material divisions, said that the renewables segment contributed KRW 5.57 trillion (USD 4.38bn/EUR 4.08bn) in sales, the highest level since the launch of the solar business in 2011. Moreover, it posted an operating profit of KRW 350.1 billion against a loss from a year earlier.
Hanwha Solutions attributed the growth in renewables to increased sales of development projects such as solar and wind farms, and accelerated sales of solar panels in the US. Just recently, it announced that Qcells will proceed to invest over USD 2.5 billion (EUR 2.33bn) in the creation of a fully-integrated, silicon-based solar supply chain in the US.
At the very end of January, Hanwha Solutions signed a binding term sheet with Norway-based REC Silicon ASA in which it is the largest shareholder. Through the pact, it essentially secured the offtake of 100% of the prime FBR polysilicon production from REC’s currently-idle Moses Lake facility in Washington.
“Securing offtake of production volumes has been a prerequisite for the reopening of the Moses Lake facility, and it marks an all-important milestone to have this in place,” Kurt Levens, CEO of REC Silicon, stated at the time. The restart of the plant is scheduled for the fourth quarter of 2023, with a goal to reach full capacity utilisation by end-2024.
On a group level, Hanwha Solutions reported its biggest-ever sales and operating profits at KRW 13.65 trillion and KRW 966 billion, respectively, though these figures were still below expectations, according to local media reports. Its full-year net profit fell by 38.7% to KRW 378 billion because of losses from the Naptha-cracking subsidiary.
“While there are lingering uncertainties over petrochemical businesses, I expect we can continue to grow from US solar market expansion and the passage of Inflation Reduction Act,” CFO Shin Yong-in commented and added that the group is targeting more than KRW 1 trillion in operating profit this year.
(KRW 1,000 = USD 0.786/EUR 0.732)
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The existing 1.7 GW Qcells manufacturing plant in Georgia, US. Image by Qcells.
