Lotte Chemical Reports 330 Billion KRW Operating Loss Last Year... "Efforts to Improve Profitability"

Decision on Year-End Dividend of 3,500 Won per Share

Lotte Chemical recorded an operating loss of 330 billion KRW last year due to the sluggish petrochemical industry market conditions.

On the 7th, Lotte Chemical announced that it posted consolidated sales of 19.9491 trillion KRW and an operating loss of 333.2 billion KRW last year. Sales decreased by approximately 10.4% compared to the previous year, but the deficit was reduced through cost improvement efforts.

Lotte Chemical stated, "The petrochemical industry market continues to deteriorate due to reduced demand and product price declines caused by global uncertainties, as well as increased supply pressure from China's large-scale ethylene plant expansions." It added, "We will enhance the petrochemical business portfolio and improve our business structure, and improve profitability through operational efficiency of existing businesses."

It also said, "We will expand high value-added specialty materials and diversify customers, and strengthen strategic investments and execution capabilities in battery materials and hydrogen energy businesses."

The basic materials business recorded sales of 2.7664 trillion KRW and an operating loss of 166.4 billion KRW. Sales slightly increased by 2.8% compared to the previous quarter, but profitability was low due to spread contraction caused by rising naphtha prices.

The advanced materials business posted sales of 967.3 billion KRW and an operating profit of 36.4 billion KRW. Profitability declined due to decreased sales volume and price drops entering the seasonal off-season. It is expected that profitability will slightly decrease due to delayed demand recovery in downstream industries and increased freight costs caused by logistics issues.

Lotte Chemical Titan recorded sales of 520.7 billion KRW and an operating loss of 61.2 billion KRW. Spread contraction caused by demand decline and rising naphtha prices resulted in lower profitability compared to the previous quarter. LC USA posted sales of 140.8 billion KRW and an operating loss of 9 billion KRW. Sales increased by about 16.1% quarter-on-quarter due to profit improvement from a drop in the raw material ethane price, and the deficit was reduced.

Meanwhile, Lotte Chemical decided on a year-end cash dividend of 3,500 KRW per common share, which is expected to be finally approved at the regular shareholders' meeting in March.

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