Kumho Petrochemical Overcomes COVID-19 Crisis, Doubles Operating Profit Last Year (Comprehensive)

Synthetic Rubber, the Core Business, Drives Performance
Steady Synthetic Rubber Performance Expected This Year, Including Sanitary Gloves
Synthetic Resin Secures Profitability Amid Growing Demand in Home Appliances and Automobiles

[Asia Economy Reporter Hwang Yoon-joo] Kumho Petrochemical's operating profit more than doubled last year due to a surge in demand for medical chemical products such as NB latex despite the impact of COVID-19. Operating profit in the fourth quarter of last year nearly increased 14 times compared to the same period the previous year.

Kumho Petrochemical announced on the 9th that its consolidated operating profit last year was 742.156 billion KRW, a 103.1% increase compared to the previous year. During the same period, sales decreased by 3.1% to 4.809526 trillion KRW, while net profit increased by 97.7% to 29.4697 billion KRW.

Operating profit in the fourth quarter of last year was 275.1 billion KRW, a 1686.4% increase compared to the same period the previous year. Sales during the same period were 1.3695 trillion KRW, down 15.9%, and net profit rose 1068.2% to 209.1 billion KRW.

Looking in detail by business division, synthetic rubber improved profitability due to increased demand for general-purpose rubber products for tires and spread expansion, and secured profitability in NB latex through steady demand for hygiene products, driving an earnings surprise.

Synthetic resins secured profitability due to steady demand for ABS used in home appliances and automobiles, while only the energy sector in other business divisions saw a decline in sales and profitability due to a drop in electricity sales prices (SMP).

The strong performance trend is expected to continue this year as well. In the case of synthetic rubber, butadiene is expected to stabilize market prices as new plants in the region begin operation. Additionally, strong demand for key products such as tires and hygiene products is expected to maintain solid profitability in the core synthetic rubber division.

For synthetic resins, SM prices are expected to rise due to regular maintenance in the region and strong prices in the U.S. However, demand from downstream industries such as home appliances and automobiles is expected to remain strong, leading to a positive outlook.

Other business divisions are expected to see improved sales and profitability due to rising electricity sales prices (SMP), and phenol derivatives are also anticipated to improve profitability due to increased demand from downstream industries.

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