1. OCI Q2 Earnings: Key Highlights
OCI reported revenue of KRW 527 billion, an operating loss of KRW 23 billion, and a net loss of KRW 7 billion for Q2 2025. While losses narrowed compared to Q1, the company failed to achieve profitability. The continued weakness in the basic chemical segment suggests challenges ahead until the new SiH4 production facility ramps up.
2. Why the Underperformance?
The disappointing results stem from a combination of factors, including weakness in the basic chemical segment and external headwinds like unfavorable exchange rates and volatile raw material prices. The rising won/dollar and won/euro exchange rates put pressure on OCI’s exports, while fluctuating oil prices further impacted profitability.
3. Outlook and Investment Strategy
While there may be short-term downward pressure on the stock price, the long-term outlook hinges on the success of the SiH4 business. The growth potential of the semiconductor and secondary battery materials market is promising, but managing risks like increased competition and raw material price volatility is crucial. Investors should focus on the long-term growth potential rather than short-term price fluctuations.
4. Action Plan for Investors
- Short-term investors: Be prepared for increased volatility following the earnings release and potential short-term price declines.
- Long-term investors: Carefully analyze the growth potential and risks associated with the SiH4 business and closely monitor the profitability of existing business segments.