LOTTE Chemical Announces Tentative Performance for 2021

█ 2021 business performance (consolidated)

   - Revenue 17.8052 trillion KRW (45.7 % increase compared to previous year)

   - Operating profit 1.5358 trillion KRW (330.3 % increase compared to previous year)

   - Recovery of front industry demands and displaying strong profitability by expanding product spread

■ 2021 Q4 business performance

   - Revenue 4.8429 trillion KRW (9.0 % increase compared to previous quarter,

     50.4 % increase compared to same quarter of previous year)

   - Operating profit 29.7 billion KRW (89.7% decrease compared to previous quarter,

     86.3 % decrease compared to same quarter of previous year)

■ LOTTE Chemical, "This will be a year to prepare for a new leap by improving existing business performance

    and accelerating efforts for future businesses such as hydrogen and battery materials amidst uncertain internal

    and external conditions”

LOTTE Chemical (CEO and Vice-chairman Kim Gyo-hyun) announced its business performance on the 8th as posting revenue of 17.8052 trillion KRW and operating profits of 1.5358 trillion KRW (consolidated) for 2021. 

LOTTE Chemical announced, “Despite the highly volatile business environment, the increased use of packaging materials, medical and quarantine supplies due to COVID 19, as well as the demands and product spread of front industries such as electric, electronic and automobiles improving made it possible to record strong operating profits.”

Regarding the outlook for 2022, LOTTE Chemical stated, “There are still uncertainties such as the spread of Omicron, rising gas prices, increased global supply chain issues, etc. just like last year, there will be gradual recovery through the continuous increase in demand for petrochemicals both domestically and abroad, and by improving supply and demand issues.” It added, “LOTTE Chemical will strengthen the competitiveness of its existing businesses such as through the LINE project in Indonesia, increased revenue through the Daesan HPC commercial production in the first half of the year, while also expanding future new businesses and specialty products such as hydrogen, recycled, and battery materials, etc. in earnest to make this year a for creating stable profitability and constructing the basis for sustainable growth.”

Q4 performance posted revenue of 4.8429 trillion KRW, which is an increase of 9.0% compared to the previous quarter. Operating profits were 29.7 billion KRW, which was a decrease of 89.7% compared to the previous quarter. Compared to the same quarter of the previous year, revenue rose by 50.4% and operating profits dropped by 86.3%.

The 2021 Q4 performance of LOTTE Chemical and its major subsidiaries are as follows.

- For the Basic Materials Division, the olefin business sector recorded revenue of 2 trillion 336.2 billion KRW and operating profits of 64.1 billion KRW. In addition to the increased supply with global expansion and reactivation of facilities in North America, the spread of the COVID-19 omicron variant resulted in weakened demand. The Aromatic Business Division recorded revenue of 617.1 billion KRW and operating losses of 10.9 billion KRW due to the application of lost opportunity costs resulting from regular maintenance of the Ulsan Plant.

- The advanced materials business recorded 1 trillion 187.8 billion KRW in revenue and 45.1 billion KRW in operating profits. As purchasing was continuously held off due to PC and ABS production facility maintenance and slow seasons, profitability decreased.

- The subsidiary LOTTE Chemical Titan recorded 759.7 billion KRW in revenue and 10 billion KRW in operating profits. Revenue increased due to completion of regular maintenance and recovery of activation rate, and productivity decreased compared to the previous year because of the limited improvements to product demand as the COVID-19 variant spread, as well as the increase of raw material costs.

- The subsidiary LC USA recorded 147.1 billion KRW in revenue and 13.4 billion KRW in operating profits. The increased raw material cost of ethane and lost opportunities due to regular maintenance of MEG equipment were reflected.

Meanwhile, LOTTE Chemical decided to give 8,300 KRW per ordinary share as dividends. Final authorization is scheduled to be given at the general meeting of shareholders in March and plans are to enhance shareholder value and promote growth of corporate value based on the confidence of shareholders and interested parties.