German chemical group Wacker Chemie has posted the financial results for 2023 with its polysilicon business falling by 61% due production-related reasons.
According to its preliminary figures for FY 2023, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) company’s polysilicon dropped by 61% to €321 million (US$347.4 million) from €826 million in 2022 due to lower volumes and prices for solar-grade polysilicon. High energy prices in Germany also had a negative impact on the company’s polysilicon business.
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The polysilicon division sales in 2023 also fell by 30% year-over-year to about €1.6 billion from €2.29 billion in 2022.
In addition to its polysilicon business, Wacker Chemie’s year-over-year sales and earnings also declined significantly last year. The group’s preliminary EBITDA dropped to €824 million in 2023, down from €2.08 billion or by about 60% due to lower prices of products, high energy costs and reduced plant-utilisation rates stemming from declined sales volumes.
In total, the group’s sales totalled around €6.40 billion last year, 22% lower than that of 2022 (€8.21 billion). Aside from lower prices and volumes, negative exchange-rate effects also impacted the development of sales.
“Price pressure was high, and the recovery in customer demand that was hoped for at the beginning of the year did not materialise. Persistently high energy prices in Germany further impacted our business. As a result, we could not post sales and earnings similar to the record figures we achieved in 2022,” said Christian Hartel, president and CEO of Wacker Chemie.
Hartel added that a recovery in demand is “not in view” now.
Speaking of the future of the company, Hartel said: “As great as the current challenges may be, we will continue to benefit from global megatrends in the medium and long term. Digitalisation, renewable energies, electromobility, and energy conservation are among the key drivers of our business.”