South Korea’s chemical and green energy company OCI Co. is expected to report strong fourth-quarter earnings, benefiting from rises in global polysilicon prices and aggressive overseas campaign.

According to multiple sources from the solar energy industry on Monday, the price of high purity polysilicon in the fourth week of December rose for a fifth consecutive week to $17.57 per kilogram, hitting the highest in almost three years.

The price rise comes as demand for OCI’s core product and an essential element for solar cells has increased mostly from Chinese solar suppliers ramping up capacity of high-efficient solar cell wafers. A rise in demand also comes as supply has been cut temporarily after a polysilicon manufacturing facility managed by Germany’s Wacker Chemical AG in Tennessee, the United States, caught fire in September due to technical defect.

Demand for polysilicon is expected to strengthen amid tight supply as energy companies seek to secure the element on hopes for a boost in solar industry with the Chinese government laying out environmentally-friendly policies.

At 2:30 p.m. Tuesday, shares of OCI were up 0.37 percent at 136,500 won.

Amid a pickup in polysilicon prices, OCI posted 78.7 billion won ($74.1 million) in operating income in the third quarter ended September - the highest in five years. Industry analysts forecast the country’s leading polysilicon supplier to generate more than 100 billion won in profit in the fourth quarter ended December, marking the highest quarterly figure in six years.

Analysts note that OCI’s improved earnings has also been led by its recent acquisition of a polysilicon plant in Malaysia, a project under president Lee Woo-hyun in April amid increased global demand for polysilicon.

According to sources, energy cost account for about 40 percent of polysilicon production cost. Polysilicon produced at its facility in Malaysia receives power from a nearby large hydroelectric power generation station at a cheaper cost, allowing the Korean polysilicon supplier to gain cost competitiveness.

OCI is expected to recoup almost all of its 200 billion won spent on the acquisition through income made over the final six months of last year.

OCI’s strong profit is also a result of its efforts to improve financial structure. It streamlined when polysilicon prices fell from oversupply by selling lucrative units like OCI Resources and OCI Materials.

By Kang Doo-soon and Lee Eun-joo

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