Wacker Chemie AG, a Munich-based chemical group company, reported total sales of €525 million (~$551.30 million) for its Polysilicon division during the first quarter (Q1) 2022, a growth of 76% year-over-year compared to €298 million (~$312.92 million) in Q1 2021.

The sales were up by 12% compared to Q4 2021 with €470 million (~$493.53 million).

The company attributed the growth in sales to higher prices, particularly for solar-grade polysilicon and polysilicon for semiconductor applications.

The division reported EBITDA (earnings before interest, taxes, depreciation, and amortization) of €225 million (~$236.29 million), a 341% YoY increase from €51 million (~$53.56 million) reported the previous year. However, the EBITDA decreased by 12% compared to the Q4, 2021, from €256 million (~$268.85 million).

Polysilicon prices and volumes, on balance, were somewhat higher but could not completely compensate for the decrease in EBIDTA. The quarter-over-quarter decrease was due to substantially higher prices for energy and raw materials like silicon metal compared to the previous quarter.

The division’s EBITDA margin was 42.7% for January through March 2022, after 17.1% in Q1 2021 and 54.5% in Q4 2021.

The company also attributed the Q1 performance to trailing inventory and hedging effects.

Wacker Group Earnings

The Wacker Group consists of three major divisions: Chemicals (Silicones and Polymers), Biosolutions, and Polysilicon.

The group reported total sales of €2.076 billion (~$2.182 billion) in Q1 2022, a 53% growth from €1.36 billion (~$1.43 billion) during the same period last year. The sales numbers grew 23% QoQ from €1.688 billion (~$1.774 billion) in Q4, 2021.

The EBITDA recorded for the quarter was €644 million (~$677 million), a 149.6% YoY increase from €258 million (~$271.26 million) in Q1 2021 and a 26% QoQ increase from €513 million (~$539.37 million) in Q4, 2021.

The company’s net income during the period was at €403 million (~$426.72 million), a 241.5% YoY increase from €118 million (~$124.08 million) recorded in Q1 2021, and a 48% QoQ increase from €272 million (~$286 million) recorded in the previous quarter.

Wacker group’s polysilicon division had reported sales of €1.53 billion (~$1.61 billion) for the full year 2021, a two-fold increase from the previous year’s (€792 million (~$832.97 million).

In 2021, Wacker Chemie signed a strategic five-year polysilicon supply agreement with JinkoSolar.