PCC Bakki Silicon Reduces Losses in Second Quarter Despite Challenging Market Conditions

PCC Bakki Silicon, Iceland's prominent silicon producer, reported improved sales in the second quarter of this year, compared to both the previous quarter and the same period last year. However, the company continues to grapple with financial losses due to challenging economic conditions in the European Union and increasing competition from Chinese manufacturers. Despite these obstacles, the company managed to reduce its losses through strategic cost improvements.

Sales for the silicon and derivatives segment of the PCC Group, with PCC Bakki Silicon as the main affiliate, reached €22.8 million in the April-June period, a significant increase from €15.5 million in the same period last year and €21.2 million in the first quarter of 2024. For the first half of the year, sales totaled €44 million, remaining largely unchanged compared to the same period in 2023.

Earnings before interest, taxes, depreciation, and amortization (Ebitda) recorded a loss of €6.6 million in the second quarter, showing an improvement from a loss of €11.5 million in the same period last year and €10.3 million in the first quarter.

PCC Bakki Silicon operated two furnaces during the first half of the year, enhancing its cost structure despite a temporary operational limitation in May due to a power shortage imposed by the electricity supplier. The company is focusing on the production of high-purity silicon grades such as 3-3-0-3 and 2-2-0-2, which command higher premiums and face less competition from non-EU producers compared to the more common grades like 5-5-3 and 4-4-1.

Meanwhile, PCC Silicium, a Polish subsidiary within the same silicon and derivatives segment, reported positive operating profits, driven by increased quartzite shipments to Iceland and stronger sales to the ferroalloy industry.