Lotte Chemical Reports Q2 Operating Profit of 110.1 Billion Won, Turns a Profit Year-on-Year
Sales Reach 5.6864 Trillion Won, Up 39.2%
Advanced Materials and Fine Chemical Drive Earnings
"Accelerating Business Restructuring at Daesan and Yeosu"
Lotte Chemical announced on August 7 that its consolidated operating profit for the second quarter of this year reached 110.1 billion won, turning into the black year-on-year.
Sales during the same period increased by 39.2% to 5.6864 trillion won.
Although global supply chain uncertainties continued due to geopolitical issues in the Middle East, Lotte Chemical explained that it was able to sustain a profit trend from the previous quarter thanks to optimized production operations and a focus on profitability-centered business management.
By business segment, the basic chemicals segment recorded sales of 3.9403 trillion won and operating profit of 2.3 billion won. Profitability declined compared to the previous quarter due to the impact of regular maintenance and the lagging effect from raw material price fluctuations.
The advanced materials unit posted sales of 1.1551 trillion won and operating profit of 132.5 billion won. Profitability improved thanks to a wider spread on key products and the positive impact of exchange rates.
Lotte Fine Chemical reported sales of 586.3 billion won and operating profit of 61.9 billion won. The company explained that its performance improved due to higher international prices for major products, stronger exchange rates, and an increase in sales volume.
Lotte Energy Materials posted sales of 194.2 billion won and an operating loss of 16.9 billion won.
Lotte Chemical is also accelerating efforts to strengthen its mid- to long-term competitiveness by innovating its business structure through restructuring and expanding high value-added businesses.
The Daesan Plant, which completed the spin-off process in June, is set to launch as an integrated entity in September. In addition, following the approval of a business restructuring plan last month, the Yeosu Plant is in discussions with affiliates to establish an integrated operational system.
The company also plans to enhance its specialty business focused on functional materials, leveraging the Yulchon Compounding Plant, which is scheduled for completion and commencement of commercial operations within the year. Through this effort, Lotte Chemical aims to strengthen its compounding material production capabilities and continue increasing the share of high value-added products such as super engineering plastics, thereby advancing its business portfolio.
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Lotte Chemical stated, "Despite the uncertainties in the domestic and global management environment surrounding the petrochemical industry, we are carrying out business restructuring to strengthen competitiveness, advance our high value-added business portfolio, foster future growth businesses, and improve our financial structure without setbacks. We will continue to respond flexibly to market changes and build a foundation for sustainable growth to enhance our corporate value."
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