Lotte Chemical Reports Q2 Operating Loss of 111.2 Billion KRW, Down 60.8% YoY

"Increase the Speed of Portfolio Advancement"

Lotte Chemical announced on the 8th that it recorded sales of 5.248 trillion KRW and an operating loss of 111.2 billion KRW in the second quarter. Sales increased by 3.4% compared to the previous year, but the operating loss grew by 60.8%.

Lotte Chemical Daesan Plant.
[Photo by Lotte Chemical]

Basic Chemicals recorded sales of 3.6069 trillion KRW and an operating loss of 139.2 billion KRW. Although product spreads expanded due to seasonal peak demand and positive exchange rate effects, losses widened due to opportunity loss costs such as simple repairs and increased inventory valuation losses.

Advanced Materials recorded sales of 1.1344 trillion KRW and an operating profit of 75.7 billion KRW. Sales and profitability improved due to expanded product spreads from increased demand in downstream industries and the effect of exchange rate appreciation.

Lotte Fine Chemical recorded sales of 422.1 billion KRW and an operating profit of 17.1 billion KRW. Sales and operating profit increased due to sales growth from the expansion of chlorine-based products and green material industrial products.

Lotte Energy Materials recorded sales of 262.7 billion KRW and an operating profit of 3 billion KRW. Despite the slowdown in the electric vehicle market growth, it achieved the highest quarterly sales by diversifying customers and expanding market share with strategic customers in North America.

Lotte Chemical stated, "We are rapidly advancing the portfolio enhancement of five strategic business units: Basic Chemicals, Advanced Materials, Fine Chemicals, Battery Materials, and Hydrogen Energy," adding, "We will improve financial soundness through accounts payable securitization and working capital improvement."