Samsung SDI achieves milestone earnings '21, in another JV talks

[Photo provided by Samsung SDI Co.]

South Korea’s battery major Samsung SDI Co. achieved milestone operating income of 1 trillion won ($831.7 billion) last year on record sales amid stronger global demand for global electric vehicles and energy storage system (ESS) for carbon-reducing commitment.

In its regulatory filing on Thursday, Samsung SDI announced that its consolidated operating profit for the October to December period totaled 265.7 billion won, down 28.0 percent from the previous quarter but up 7.9 percent from last year.

Revenue gained 10.9 percent on quarter and 17.4 percent on year to 3.8 trillion won. Net profit fell by 6.8 percent on quarter to 391.6 billion won but was up 14.5 percent from the previous year.

Shares of Samsung SDI closed at 594,000 won, down 6.16 percent on Thursday.

It achieved milestone in both top and bottom lines last year.

Samsung SDI raised 1.06 trillion won in operating income, up 59 percent from a year ago. Revenue rose 20 percent to 13.55 trillion won. Net profit was up 98.2 percent from the previous year to 1.25 trillion won.

EV battery revenue was boosted due to supply increase of Gen. 5 batteries. ESS revenue and profitability improved with sales increase of high-value products in the fourth quarter.

For its small-sized lithium-ion business, revenue for cylindrical batteries went up while pouch revenue decreased on reduced orders for flagship Samsung phones due to seasonal factors in the fourth quarter. For its electronic materials business, polarizer revenue and OLED materials revenues went up. Semiconductor materials revenue, however, fell due to customer’s inventory adjustments.

In the first quarter, Samsung SDI expects ESS sales to fall while profitability remains unchanged with improved product mix and battery sales for EV is expected to go up for new models.

Samsung SDI projects that this year the EV market size will grow 38 percent on year to $80 billion under environmental policies which will lead to a sales increase of high-energy-density batteries. The ESS market size is predicted to grow 31 percent and small-sized lithium-ion battery market 12 percent. Samsung SDI also expects continued high demand for high-value materials such as display and semiconductor materials.

The company is readying to sign a joint-venture contract with Stellantis N.V. to start its first mass-production in North America before 2025. It unveiled during conference call that the company was discussing partnership with another carmaker, without elaborating.

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