Lotte Chemical Reports Q3 Operating Loss of 132.6 Billion Won..."Business Restructuring Narrows Deficit"

Consolidated Sales of 4.7861 Trillion Won in the Third Quarter

On November 12, Lotte Chemical announced its provisional consolidated results for the third quarter of this year, reporting sales of 4.7861 trillion won and an operating loss of 132.6 billion won. Compared to the same period last year, sales decreased by 5.7%, while the operating loss improved by 68.2%.

Lotte Chemical Ulsan Plant Overview. Lotte Chemical

A representative from Lotte Chemical stated, "We are actively pursuing structural business reforms to secure mid- to long-term competitiveness and improve cash flow," adding, "We plan to respond proactively to the government's restructuring of the petrochemical industry and accelerate the sale of non-core assets to strengthen our fundamental competitiveness and financial stability."

The basic chemicals segment, including Lotte Chemical’s Basic Materials Business, LC Titan, LC USA, and Lotte GS Chemical, recorded sales of 3.3833 trillion won and an operating loss of 122.5 billion won. Lotte Chemical explained, "Profitability improved as one-off costs from regular maintenance were eliminated and feedstock prices stabilized downward, leading to a better spread," and added, "While feedstock prices are expected to remain stable in the fourth quarter, global demand is likely to remain sluggish due to ongoing external uncertainties."

The advanced materials segment posted sales of 1.0222 trillion won and operating profit of 57.5 billion won. Lotte Chemical commented, "Despite a decrease in demand from downstream industries and conservative inventory management, robust profitability was maintained through expanded sales of high value-added products," and noted, "In the fourth quarter, which is a seasonal off-peak period, sales volume is expected to decrease due to the impact of regular maintenance."

Lotte Fine Chemical reported sales of 443.4 billion won and operating profit of 27.6 billion won. A company official stated, "Profitability improved due to the rise in international prices of chlorine-based products and the effects of completing regular maintenance," and added, "In the fourth quarter, we plan to expand sales focused on high value-added products, even as downstream industries remain steady."

Lotte Energy Materials recorded sales of 143.7 billion won and an operating loss of 34.3 billion won. According to Lotte Chemical, "Despite efforts to adjust inventory and improve productivity, losses continued due to adjustments by client companies," and added, "Although challenging external conditions are expected in the fourth quarter, such as strong feedstock prices and uncertainty in downstream industries, we plan to continue expanding strategic sales of high value-added products for artificial intelligence (AI) circuit foils and battery foils for energy storage systems (ESS)."

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