■ LOTTE Chemical Q3 2024 Financial Results: KRW 5,200.2 Billion in Revenue, KRW 413.6 Billion in Operating Loss.
■ LOTTE Chemical continues efforts to secure financial stability by focusing on controllable areas… Implementing the "Operation Excellence Project" to optimize plant operations and reduce costs. Additional measures include securing funds through the sale of overseas subsidiary stakes and restructuring non-core and low-profit businesses.

LOTTE Chemical reported consolidated financial results for Q3 2024, recording revenue of KRW 5.2 trillion and an operating loss of KRW 413.6 billion. The Company announced that there have been increased losses compared to the previous quarter due to delayed demand recovery, lower product spreads due to currency depreciation, one-time costs from maintenance at overseas subsidiaries, and rising shipping costs.

LOTTE Chemical’s performance records for 3Q 2024 are as follows:

The Basic Chemicals segment, which includes LOTTE Chemical's basic materials division, LC Titan, LC USA, and LOTTE GS Chemical, recorded revenue of KRW 3,628.2 billion and an operating loss of KRW 365 billion. Looking ahead to Q4, the Company expects gradual market improvement as one-time costs are eliminated, and raw material and shipping costs stabilize.

The Advanced Materials segment reported revenue of KRW 1,121.7 billion and an operating profit of KRW 38.1 billion. Profitability declined due to increased shipping costs and reduced product sales volumes and spreads caused by weakened demand in downstream industries.

LOTTE Fine Chemical achieved revenue of KRW 420.4 billion and an operating profit of KRW 10.3 billion. Profitability was impacted by weaker chlorine market conditions and reduced sales volumes of ammonia-based products. However, the Company anticipates revenue growth in Q4 driven by rising global prices and sales volumes of chlorine and ammonia products, along with increased sales of green materials.

LOTTE Energy Materials reported revenue of KRW 211.4 billion and an operating loss of KRW 31.7 billion. The segment turned to a loss due to declining demand from downstream industries, reduced production and sales volumes, currency depreciation, and increased inventory valuation losses.

Looking ahead, the start of mass production at a new North American joint venture (JV) plant is expected to boost sales in the region compared to the previous quarter. However, demand in the European market remains uncertain due to ongoing inventory adjustments by key customers.

LOTTE Chemical stated, “In the short term, the chemical industry downturn caused by geopolitical risks and demand imbalances is unlikely to be resolved quickly. However, we will continue to focus on controllable areas to strengthen financial stability.”

As a part of its asset-light strategy, the Company has decided to liquidate its Malaysian synthetic rubber production subsidiary, LUSR, and plans to secure a total of KRW 1.4 trillion by selling stakes in overseas subsidiaries. Additionally, to enhance financial stability, LOTTE Chemical is expanding its "Operational Excellence Project" aimed at optimizing plant operations and reducing costs. Initially implemented at the Yeosu plant in the first half of the year, the project is now being extended to the Daesan plant in the second half.