LOTTE Chemical Announces Tentative Performance for Q1 of 2022

█ 2022 Q1 revenue 5.5863 trillion KRW, operating profits 82.6 billion KRW

  - Revenue increased by 8.3%, operating profits increased by 180.0% compared to previous quarter Achieved highest-ever quarterly revenue

LOTTE Chemical (CEO Kim Gyo-hyun) announced on the 13th that its 2022 Q1 tentative performance (consolidated) was 5 trillion 586.3 billion KRW and operating profits was 82.6 billion KRW. 

Revenue increased by 8.3% and operating profits rose by 180.0% compared to the previous quarter, and when compared to the same period of the previous year, revenue grew by 34%, but operating profits dropped by 86.8%.

Regarding the Q1 performance, LOTTE Chemical stated, “Despite the uncertain business environment, we achieved the highest-ever quarterly revenue through continuous business portfolio optimization, strengthening product competitiveness, and procuring stable client pools,” while adding, “Profitability decreased compared to the same period of the previous year due to external variables such as rising international oil costs, COVID-19 pandemic-related lock-downs in China, etc.”

The 2022 Q1 performance of LOTTE Chemical and its major subsidiaries are as follows.

- The basic materials business recorded 3 trillion 474.7 billion KRW in revenue and 17 billion KRW in operating profits. There was high demand for food packaging, medical, and solar power materials, etc., but profitability exhibited limited growth due to increased costs because of the rapid increase in international oil prices and slowed demand resulting from China’s lock-down because of COVID-19.

- The advanced materials business recorded 1 trillion 314.2 billion KRW in revenue and 54.5 billion KRW in operating profits. Despite the Chinese lock-downs and the limited growth of front industries, there was strong demand mainly in the Americas and Europe, thus raising profitability compared to the previous quarter.

- LOTTE Chemical Titan recorded 791.3 billion KRW in revenue and 7.4 billion KRW in operating profits. Increased costs for raw materials resulting from high oil prices and decreased demand due to the Chinese lock-down led to decreased profitability.

- LC USA recorded 162.3 billion KRW in revenue and 16 billion KRW in operating profits. Strong profitability was maintained by procuring cost competitiveness using shale gas-based ethanol raw materials and high product prices. 

Regarding Q2 performance, LOTTE Chemical predicted, “It is expected that market uncertainties such as high oil prices and continued lock-down in China will continue, and the large-scale regular maintenance of the Yeosu Plant will somewhat restrict the increase of profits.”

“While focusing on creating profitability of existing businesses by increasing high-value products, elevating cost competitiveness, strengthening sales capacities, etc. we will also implement hydrogen and battery materials businesses in earnest, and expand our capacities for future businesses such as eco-friendly and recycled products, etc. to construct our platform for sustainable growth,” and added, “We will increase corporate value by expanding shareholder value and reinforcing ESG management.”