by Hwang Yoonju
Published 01 Apr.2022 10:01(KST)
[Asia Economy Reporter Hwang Yoon-joo] Lotte Fine Chemical is soaring on expectations of achieving the highest quarterly operating profit in its history for the first quarter.
As of 10 a.m. on the 1st, Lotte Fine Chemical is trading at 83,600 KRW, up 5.56% from the previous trading day.
On the same day, Lee Dong-wook, a researcher at Kiwoom Securities, stated, "Lotte Fine Chemical's operating profit for the first quarter of this year is expected to reach 87.9 billion KRW, a 147.4% increase compared to the same period last year, and it is forecasted to break the company's highest quarterly record again following the previous quarter."
Strong performance is anticipated due to improved results across all business divisions. Demand for key chemical chlorine-based products such as ECH and caustic soda surged, and ammonia-based products saw a significant rise in the price of urea solution.
Furthermore, the researcher explained, "Chlor-alkali production capacity worldwide is expected to see the lowest increase in the past 25 years over the next 5 to 6 years due to the closure of aging facilities in North America and environmental regulations in China and India," adding, "The supply-demand tightness will continue until 2027, allowing Lotte Fine Chemical to enjoy a reflective benefit."