'NB Latex Achieves Top Performance'... Kumho Petrochemical Breaks Record for Highest Q2 Earnings

[Asia Economy Reporter Hwang Yoon-joo] Kumho Petrochemical announced on the 6th that its consolidated operating profit for the second quarter of this year reached 753.659 billion KRW, a 527.3% increase compared to the same period last year. Sales increased by 114.3% to 2.199 trillion KRW, and net profit soared 484.3% to 583.067 billion KRW.

Kumho Petrochemical explained that sales increased and profitability was secured due to steady demand for NB latex and improved demand for tire rubber products amid the global economic recovery.

By business segment, the butadiene market in the third quarter is expected to remain strong due to supply instability in Asia caused by delays in new plant operations and increased demand in the United States. However, temporary demand decline is anticipated due to strengthened lockdown measures from the COVID-19 surge in Southeast Asia, and profitability is expected to slightly decrease due to rising raw material (BD) prices.

The synthetic resin segment maintained profitability of ABS/PS products due to steady demand from downstream industries and disposable products. The third quarter is expected to see some decline in styrene monomer (SM) demand due to the seasonal off-peak period.

Phenol derivatives improved profitability thanks to strong demand for BPA and epoxy, while the energy segment experienced decreases in sales and profitability due to scheduled maintenance. For the third quarter, steady demand for BPA and epoxy is expected, but performance is projected to decline due to scheduled maintenance and a reduced spread of key products compared to the previous quarter.

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