DL Chemical Reports Operating Profit of 211.7 Billion KRW in H1 Despite Petrochemical Sector Slump

While petrochemical companies have been experiencing poor performance, DL Chemical posted solid results.

According to DL's preliminary earnings announcement on the 1st, DL Chemical recorded sales of 2.5464 trillion KRW in the first half of this year on a consolidated basis, an increase of about 16.5% compared to the same period last year. Operating profit rose by 227.1 billion KRW to 211.7 billion KRW.

On a separate basis, DL Chemical posted sales of 1.0167 trillion KRW in the first half of this year, up 33.6% from 761.2 billion KRW in the same period last year, and operating profit jumped about 400% from 31.4 billion KRW in the first half of last year to 156.9 billion KRW.

DL Chemical also closed the first quarter with solid results that belied the recession. On a consolidated basis, sales and operating profit increased by 9.9% and 540%, respectively, compared to the same period last year, recording 1.2297 trillion KRW and 117.8 billion KRW, while on a separate basis, it achieved its highest sales since its launch at 501.6 billion KRW. The strong performance continued into the second quarter. DL Chemical posted sales of 1.3166 trillion KRW in the second quarter on a consolidated basis, up 7% from the previous quarter. Despite a decrease due to regular maintenance of Crayton, operating profit remained at 93.9 billion KRW, comparable to the previous quarter.

The company cites product high value-addedization as the driving force behind the strong performance. DL Chemical has rapidly restructured its business around high value-added products for several years. POE, which began full-scale sales last year, has steadily increased sales volume in the first half of this year, significantly contributing to profits. PB, where DL Chemical maintains the world's number one market position, also saw increases in both sales volume and spread in the first half. Cariflex is also recording high profits based on world-class technology.

A DL Chemical official said, "Based on the market's firm trust in DL Chemical products, we recorded strong results in the first half," adding, "DL Chemical will continue to accelerate its growth as a technology-centered specialty company capable of generating profits despite any market uncertainties."