Solus Advanced Materials said on Wednesday it posted third-quarter revenue of 125.5 billion won and an operating loss of 30.1 billion won. Revenue jumped 83.1 percent from a year earlier, while the operating loss widened from 26.0 billion won in the same period last year.

From the previous quarter, revenue rose 23.2 percent but the operating loss widened from 21.7 billion won. Loss from continuing operations before income taxes was 83.2 billion won, wider than 22.9 billion won in the previous quarter and 21.4 billion won a year earlier. Net loss was 72.7 billion won, swinging from a net profit of 59.3 billion won in the previous quarter. Revenue for the first three quarters totalled 315.4 billion won, up 33.7 percent from a year earlier, while cumulative operating loss widened to 83.8 billion won from 67.3 billion won.

The revenue increase was led by battery foil. Battery foil revenue was 91.6 billion won, up 151.6 percent from 36.4 billion won a year earlier and up 22.1 percent from 75.0 billion won in the previous quarter, marking a record quarterly high. The company said supply volumes increased as demand rose from global battery and electric-vehicle customers.

Profitability was weak. The average power price based on the Hungarian Power Exchange (HUDEX) rose about 38 percent to 151.1 euros per MWh in the third quarter from an average 109.2 euros in the second quarter, increasing the burden of energy costs. The company said increased costs including depreciation also affected earnings.

Revenue from its OLED (organic light-emitting diode) business unit was 33.9 billion won, up 5.6 percent from 32.1 billion won a year earlier and up 26.0 percent from 26.9 billion won in the previous quarter, setting a quarterly record. The company said supply volumes of R Prime for mobile use expanded, and supplies of HBL based on IP (intellectual property) patents increased as Chinese customers resumed phone production.

Solus Advanced Materials said it is pursuing price increases with most battery foil customers to improve profitability. It has completed talks with some key customers and the higher prices will be reflected starting with fourth-quarter results. The company said it will continue talks with remaining customers and plans to raise prices in stages next year as well.

The company said it expects its position as the only battery foil production base in Europe to be highlighted as a competitive advantage. In North America, it said, growth in the battery market is expanding from electric vehicles to ESS (energy storage systems) due to expansion of power infrastructure and rising demand for energy storage. The company said it plans to respond to demand changes from related customers.

Solus Advanced Materials CEO Geun-man Kwak (곽근만) said, "We plan to wrap up talks on battery foil price increases with customers without a hitch and respond flexibly to customer demand in line with market changes such as expanding demand for electric vehicles centered on Europe and for ESS in North America." He added, "Next year as well, we will continue to improve profitability through sequential price increases and focus on achieving EBITDA and turning profitable on a quarterly basis within the year."