DL Chemical Reports Operating Profit of 117.8 Billion KRW in Q1 Despite Petrochemical Downturn

DL Chemical overcame the structural crisis in the domestic petrochemical industry caused by oversupply from China by leveraging a strong product portfolio, recording solid performance in the first quarter of this year.

On the 2nd, DL Chemical announced that it achieved consolidated sales of 1.2297 trillion KRW and operating profit of 117.8 billion KRW in the first quarter of this year, driven by strong sales of high value-added specialty products and steady performance from its subsidiaries. Sales and operating profit increased by 9.9% (110.5 billion KRW) and 540% (99.4 billion KRW) respectively compared to the same period last year, and rose by 16.3% (172 billion KRW) and 820% (105 billion KRW) respectively compared to the previous quarter.

On a standalone basis, DL Chemical achieved its highest sales since its inception at 501.6 billion KRW, thanks to robust sales of newly developed POE (polyolefin elastomer) and PB (polybutene) for solar pouch films. Sales increased by 18.2% (77.4 billion KRW) year-on-year and by 14.1% (62.1 billion KRW) quarter-on-quarter. Operating profit also reached 82.8 billion KRW, accounting for 16.5% of sales. This represents a 414% (66.7 billion KRW) increase year-on-year and a 35.3% (21.6 billion KRW) increase quarter-on-quarter.

Major subsidiaries also contributed to the improved performance. Crayton posted sales of 695.3 billion KRW, up 4.9% year-on-year and 28.8% quarter-on-quarter, supported by stabilized raw material prices and increased sales volume. Operating profit turned positive at 55.6 billion KRW. Cariflex also maintained steady performance through its high value-added synthetic rubber products for medical materials.

The strong first-quarter performance of DL Chemical is attributed to its proactive efforts to increase product value. DL Chemical anticipated structural limitations in the general-purpose petrochemical business due to China’s rise and has rapidly restructured its business towards high value-added products since the boom years. By acquiring global leading companies such as Crayton and Cariflex, it expanded its business scope from general-purpose to specialty products, increasing the proportion of high value-added products with price premiums such as POE in its product portfolio.

A DL Chemical representative said, "DL Chemical is strengthening its portfolio with high value-added specialty products that are recognized by customers for their differentiated value," adding, "We will continue to accelerate growth as a company capable of generating profits despite any market uncertainties."

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