Lotte Chemical, 353.3 Billion KRW Last Year... 68.1% Decrease YoY

[Asia Economy Reporter Hwang Yoon-joo] Lotte Chemical announced on the 5th that its consolidated operating profit for last year was 353.3 billion KRW, a 68.1% decrease compared to the previous year. During the same period, sales amounted to 12.2346 trillion KRW, down 19.1%.

Lotte Chemical stated, "The year 2020 was overall a year of contraction in business conditions due to demand slump caused by the spread of COVID-19 and an accident at the Daesan plant," adding, "We integrated Lotte Advanced Materials (now Lotte Chemical Advanced Materials Business), focused on diversifying our product portfolio centered on high value-added products, and prioritized completing the restoration work of the Daesan plant within the year and resuming normal operations."

Operating profit in the fourth quarter of last year was 212.5 billion KRW, a 49.3% increase compared to the previous year, while sales were 3.2313 trillion KRW, a 12.5% decrease.

Looking closely at the fourth-quarter performance of major subsidiaries, in the Basic Materials Business, the Olefin division recorded sales of 1.3473 trillion KRW and operating profit of 88.8 billion KRW due to increased demand driven by expectations of global economic recovery and strong product spreads. The Aromatics division posted sales of 390.7 billion KRW and an operating loss of 5.5 billion KRW due to strong raw material prices and decreased demand in the off-season.

The Advanced Materials Business recorded sales of 885.2 billion KRW and operating profit of 82.7 billion KRW. The spread of untact (non-face-to-face) culture increased demand for materials used in home appliances, and the recovery trend in the global automotive industry boosted mobility materials-related performance, maintaining solid results.

Subsidiary Lotte Chemical Titan posted sales of 523.7 billion KRW and operating profit of 67 billion KRW. As the pandemic subsided, demand increased and tight product supply conditions continued, resulting in stable profitability.

Subsidiary LC USA recorded sales of 106.1 billion KRW and an operating loss of 400 million KRW. The facilities that were temporarily shut down due to hurricanes 'Laura' and 'Delta' resumed normal operations, and improved product spreads reduced the deficit.

Lotte Chemical stated, "This year, we expect an improved business environment compared to the previous year due to gradual demand increase following the global economic recovery trend and normal operation of the Daesan plant," adding, "We will actively pursue strategic ESG management, including strengthening existing businesses based on Lotte Chemical BU's eco-friendly initiative 'Green Promise 2030' and expanding high value-added products including eco-friendly and recycled materials."

Meanwhile, Lotte Chemical decided on a year-end cash dividend of 3,600 KRW per common share. Dividend-related matters will be finalized at the regular shareholders' meeting to be held in March, and the company plans to actively implement Lotte Group's shareholder-friendly policies while continuously strengthening shareholder rights.

This content was produced with the assistance of AI translation services.