German chemical group Wacker Chemie has reported its financial results for 2023, revealing a significant downturn in its polysilicon business, which experienced a 61% drop in earnings before interest, taxes, depreciation, and amortization (EBITDA).
Preliminary figures show that the polysilicon division's EBITDA fell to €321 million ($347.4 million) from €826 million in 2022, attributed to lower volumes and prices for solar-grade polysilicon. High energy prices in Germany further impacted the division's performance.
Sales for Wacker Chemie's polysilicon business in 2023 also declined by 30% year-over-year to approximately €1.6 billion from €2.29 billion in 2022. The overall sales and earnings of the company experienced a significant year-over-year decline, with preliminary EBITDA dropping to €824 million in 2023 from €2.08 billion, a decrease of about 60%. This decline was attributed to lower product prices, high energy costs, and reduced plant-utilization rates resulting from decreased sales volumes.
Wacker Chemie's total sales for 2023 amounted to around €6.40 billion, a 22% decrease compared to 2022 (€8.21 billion). Factors such as lower prices, reduced volumes, and negative exchange-rate effects contributed to the decline.
Christian Hartel, President and CEO of Wacker Chemie, acknowledged the challenging market conditions, citing high price pressure and unfulfilled expectations for a recovery in customer demand. Hartel mentioned that a demand recovery is currently not anticipated.
Looking ahead, Hartel expressed optimism about the company's long-term prospects, stating, “As great as the current challenges may be, we will continue to benefit from global megatrends in the medium and long term. Digitalization, renewable energies, electromobility, and energy conservation are among the key drivers of our business.”
