Kumho Petrochemical Q2 Operating Profit Soars 420% Year-on-Year to 339 Billion Won

Strong Performance in Synthetic Resin and Phenol Derivatives Divisions

Kumho Petrochemical announced on August 7 that its consolidated operating profit for the second quarter of this year reached 339 billion won. This represents a 419.9% increase compared to the same period last year.

Kumho Petrochemical Headquarters. Kumho Petrochemical

Revenue totaled 2.2682 trillion won, up 27.9% year-on-year. Net profit jumped 420.4% to 300.4 billion won.

By business segment, the synthetic rubber division posted revenue of 987.1 billion won and operating profit of 189.8 billion won.

Kumho Petrochemical explained that the results were due to increased product demand amid the Middle East war, which expanded the spread between sales prices and raw material costs.

As the operating rates of glove manufacturers rose, demand for NB latex, used as a raw material for nitrile gloves, increased and the spread widened as well.

The synthetic resin division recorded revenue of 375.4 billion won and operating profit of 37.4 billion won.

The phenol derivatives division posted revenue of 492.8 billion won and operating profit of 55.1 billion won.

Although overall sales volume declined due to regular maintenance of major product facilities, improvement in the spread resulted from clients securing supply volumes in advance.

The automotive high-performance rubber materials (EPDM·TPV) business achieved revenue of 227.1 billion won and operating profit of 47.4 billion won.

Kumho Petrochemical expects that, in the third quarter, some business units may see a slight decline in profitability due to seasonal off-peak effects and weakening demand from downstream industries. However, the company anticipates its energy business will see improved profitability as raw material prices stabilize and strong system marginal prices (SMP) continue.

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