South Korea-based renewable energy and chemicals company of the Hanwha Group, Hanwha Solutions has blamed the decline in solar module sales as the major reason for its Q3/2023 net sales to have dropped YoY. The 9.7% YoY and 14% QoQ decline led to KRW 2.92 trillion ($21.79 billion) in total net sales for the quarter.
The renewable energy segment, comprising power generation asset development, EPC, solar modules and other related activities, contributed KRW 1.28 trillion ($9.53 billion) to net sales, reflecting 21% QoQ and 4% YoY drop.
While the group operating profit dropped to KRW 98.3 billion ($72.7 million), declining by 49% QoQ, that of the renewable energy business segment went down by 75% QoQ and more than 82% YoY.
The company says the Q3 financial results include expected tax credits of KRW 35 billion ($2.6 billion) following the implementation of the US Inflation Reduction Act (IRA).
Looking forward to Q4/2023, the management expects an increase in shipments for its renewable energy business, with a widening of module and wafer spreads and revenue growth in power development and EPC business.
"Although solar product prices have fallen in some regions due to supply exceeding strong demand, global solar demand continues to increase," said Hanwha Solutions' CFO & Vice President Ansik Yoon. "We are looking forward to developing power generation assets and EPC sales of approximately KRW 1 trillion."
Hanwha Solutions' solar PV manufacturing arm Hanwha Q Cells is currently in the process of bringing online its 1.4 GW module plant in the US along with a 2 GW module fab in the US by H2/2023. In 2024, it plans to commission 3.3 GW ingot and wafer, solar cell and module capacity each (see Hanwha Solutions Planning 8.4 GW US Production Capacity).
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