Lotte Chemical Reports 594 Billion KRW Operating Profit in 2Q... Achieves 1 Trillion KRW in First Half for the First Time in 3 Years

[Asia Economy Reporter Hwang Yoon-joo] Lotte Chemical announced on the 6th that its consolidated operating profit for the second quarter of this year reached 594 billion KRW, an increase of 1704.5% compared to the same period last year. Sales rose 62.3% to 4.352 trillion KRW.

Lotte Chemical stated, "In the first half of this year, demand for petrochemical products showed an overall increasing trend due to the global economic recovery. Based on the expansion of a high value-added product portfolio including eco-friendly and hygiene materials and strong cost competitiveness, we achieved a half-year operating profit of 1 trillion KRW for the first time in three years since the first half of 2018."

By business segment, the Olefin division within the Basic Materials business recorded sales of 1.8977 trillion KRW and operating profit of 271 billion KRW. It maintained solid profitability due to the recovery of downstream industries and increased demand for eco-friendly and hygiene materials. The Aromatics division posted sales of 594.6 billion KRW and operating profit of 52.2 billion KRW, with profitability significantly increasing due to strong demand for food and beverage containers and PIA (high-purity isophthalic acid) products.

The Advanced Materials business recorded sales of 1.1823 trillion KRW and operating profit of 126 billion KRW. Both sales and profitability expanded due to increased demand from downstream industries such as electronics and home appliances and sales of high value-added compounding products.

Among major affiliates, Lotte Chemical Titan recorded sales of 691.5 billion KRW and operating profit of 119.9 billion KRW. Strong demand for disposable and hygiene products continued, and supply remained tight due to the absence of new or expanded facilities in the Southeast Asian region, resulting in sales growth and solid profitability.

LC USA posted sales of 126.9 billion KRW and operating profit of 38.1 billion KRW. It recorded a high operating profit margin of 30% based on shale gas-based strong cost competitiveness and steady product demand.

Regarding the outlook for the second half of the year, Lotte Chemical said, "Although new capacity additions are expected, the decline in product spreads will be limited due to the global economic recovery, including expanded vaccination and increased demand from downstream industries such as automobiles and construction." It added, "To secure future growth engines, we plan to actively promote new businesses such as the execution of the '2030 Hydrogen Growth Roadmap' announced in July this year, the establishment of Korea's first chemical recycling PET (C-rPET) plant, and investment in battery electrolyte organic solvent production facilities."

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