Wacker Polysilicon sees strong growth in Q2 on higher volumes, prices

The polysilicon division of Munich-based chemical company Wacker Chemie AG (ETR:WCH) enjoyed strong growth in the second quarter of 2021 on “significantly” higher volumes and prices for solar-grade polysilicon, the company’s quarterly report showed today.

The division generated earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 148.7 million (USD 176.4m), against an EBITDA loss of EUR 35 million a year ago. The improvement mainly reflects a substantial increase in solar-grade polysilicon prices, the company said. The figure was also aided by production-efficiency measures and further efforts to reduce the cost of goods sold.

EBITDA margin surged to 42.1% from negative 23% in the second quarter of 2020 and 17.1% in the preceding quarter.

Wacker Polysilicon’s sales more than doubled year-over-year to EUR 352.9 million. In addition to significantly increased solar-grade polysilicon volumes, demand from the semiconductor industry was also substantially higher, the company said. Compared to the first quarter of 2021, sales grew 18%.

"Our polysilicon business has been performing particularly well, fueled largely by the high quality of our product for both highly efficient solar cells and semiconductor applications, and by strong customer demand in a tight market," said chief executive Christian Hartel.

The group overall also posted significant increases in sales and earnings after the coronavirus pandemic dampened business in the year-ago quarter. EBITDA tripled from a year ago to EUR 326.6 million, while sales grew 40% to EUR 1.5 billion. Nearly all segments saw substantial volumes growth and prices improved especially for solar-grade polysilicon, but also for many products of the chemical divisions, the company said.

Wacker confirmed its full-year outlook, which was raised in June.

(EUR 1 = USD 1.186)

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