Lotte Chemical, 3Q Operating Profit 288.3 Billion KRW... Up 48.8% YoY

[Asia Economy Reporter Hwang Yoon-joo] Lotte Chemical announced on the 5th that its consolidated operating profit for the third quarter reached 288.3 billion KRW, a 48.8% increase compared to the same period last year. Sales rose 45.9% to 4.4419 trillion KRW.

Lotte Chemical explained, "The spread of major products narrowed due to rising raw material costs caused by the sharp increase in international raw material prices and increased international logistics costs. Additionally, demand in upstream industries shrank due to the resurgence of COVID-19 and semiconductor supply issues, resulting in a decline in profitability."

By business segment, the Olefin division within the Basic Materials business recorded sales of 2.1326 trillion KRW and an operating profit of 148.9 billion KRW. Although sales increased compared to the previous quarter, profitability slightly declined due to the rise in the price of naphtha, a raw material, and the inflow of new capacity in the Asian region. The Aromatics division posted sales of 602.4 billion KRW and an operating profit of 11.9 billion KRW. While sales increased due to steady product demand, operating profit decreased due to rising raw material costs and the inflow of competitors' expanded capacity.

The Advanced Materials business recorded sales of 1.2566 trillion KRW and an operating profit of 76.5 billion KRW. Sales continued to rise from the previous quarter, but profitability slightly declined due to decreased demand in upstream industries such as mobility, IT, and home appliances caused by semiconductor supply disruptions, as well as increased raw material costs for polycarbonate (PC).

Lotte Chemical Titan posted sales of 619.9 billion KRW and an operating profit of 27.0 billion KRW, while LC USA recorded sales of 152.5 billion KRW and an operating profit of 41.8 billion KRW.

Lotte Chemical forecasted, "Uncertainties related to the soaring international oil prices and the inflow of new capacity both domestically and internationally are expected to persist. However, demand for chemical products is anticipated to increase due to the global economic recovery and improvement in the manufacturing sector, along with a positive spillover effect from power shortages in emerging countries."

They added, "We plan to strengthen competitiveness through domestic and overseas business expansion, including the full-scale promotion of the Indonesia LINE project and the start of HPC operations. Additionally, based on the '2030 Hydrogen Growth Roadmap' announced in July this year, we will proceed as planned with eco-friendly future businesses such as hydrogen business cooperation, investment in battery electrolyte organic solvent production facilities, and the establishment of the nation's first chemical recycling PET (C-rPET) plant."

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