Strong demand and high ASPs for solar-grade silicon led to Germany's Wacker Chemie AG reporting 61% annual increase in polysilicon sales for Q2/2022, contributing over 26% of group sales even as higher energy and raw material prices pulled down its EBITDA by 5% sequentially.
In specific terms, Wacker's group sales of €2.17 billion (up 45% YoY) comprised €568.2 million from the polysilicon business division. On quarterly basis, polysilicon sales increased 8% from €525 million in Q1/2022.
High prices for solar and semiconductor polysilicon as well as production efficiency measures also helped improve the polysilicon division's EBITDA for the reporting quarter by 44% YoY to €213.8 million.
On a sequential basis though the EBITDA dropped 5% with higher energy and raw material prices, and the EBITDA margin of 37.6% in Q2/2022 was the lowest in any of the last 5 quarters for Wacker's silicon division. These factors are a matter of concern for the company, along with 'uncertainty regarding future natural gas supplies'. While the management confirmed that its production remains unaffected so far, this issue has pushed up its production costs.
"The positive trend in selling prices and the strong demand we are currently seeing in our customer sectors allow us to look to the second half of the year with confidence – despite current uncertainty," said Wacker CEO Christian Hartel.
As demand for solar grows along with Europe's need for a non-Chinese supply chain, Wacker remains bullish about its polysilicon prospects in the future.
"When it comes to polysilicon, the company is concentrating on its goal of increasing the share of hyperpure semiconductor-grade polysilicon in its portfolio. The goal is to increase Group sales to over €10 billion by 2030, while still maintaining high profitability," added Hartel.
The management has upped its forecast for 2022 group sales between €8.0 billion to €8.5 billion, from €7.5 billion previously, and EBITDA between €1.8 billion to €2.3 billion driven by 'continuing positive trend in selling prices and unabated strong demand in numerous customer sectors'.
Management added that higher energy and raw-material costs are likely to impact EBITDA by around €1.5 billion in 2022.
For polysilicon, it expects sales of around €2.1 billion in 2022 with an EBITDA of €700 million to €850 million.
In May 2022, Wacker said it was undertaking a feasibility study to undertake expansion of its silicon melting capacity at Norway's Holla location to increase its onsite capacity by around 50%, to be used for silicone and hyperpure polysilicon (see Wacker: Silicon Metal Production Expansion Plans).