LOTTE Chemical Announces Tentative Performance for Q2 of 2022

█ 2022 first half revenue 11.0973 trillion KRW, operating profits 61.2 billion KRW

█ 2022 Q2 revenue 5.511 trillion KRW, operating losses 21.4 billion KRW… 

    Affected by rise in raw material prices and slow global demand

█ LOTTE Chemical, “Will continue efforts to improve production efficiency and defend profitability 

   by expanding sales of high-value products”… “Plans to proceed with new business as scheduled 

   such as hydrogen energy, battery materials, recycled plastics, etc."

LOTTE Chemical announced the 2022 first half and Q2 tentative performance (consolidated). 

LOTTE Chemical announced 2022 first half revenue of 11.0973 trillion KRW and operating profits 61.2 billion KRW Q2 revenue was recorded at 5.511 trillion KRW and operating losses of 21.4 billion KRW, and while revenue increased by 26.6% compared to the same period of the previous year, operating profits fell into deficit.

LOTTE Chemical announced, “The first half of this year had low profitability as the industry outlook worsened because of rising raw material prices and falling demand,” and added, “We will continue to try to defend our profitability by increasing production efficiency and increasing sales of high value products.”

The 2022 Q2 performance of LOTTE Chemical and its major subsidiaries are as follows.

- The basic materials business recorded 3 trillion 453.4 billion KRW in revenue and 8.4 billion KRW in operating losses. Opportunity loss due to scheduled maintenance at Yeosu Plant, and was affected by rising raw material prices and slowing of global demand.

- The advanced materials business recorded 1 trillion 234.6 billion KRW in revenue and 71.4 billion KRW in operating profits. Despite the rapid decline in front line demand due to concerns over inflation, raw material prices for major products stabilized, thus improving profitability compared to the previous quarter.

- LOTTE Chemical Titan recorded 821.8 billion KRW in revenue and 60 billion KRW in operating losses. Deficits were recorded due to slowing demand in China and raw material price issues.

- LC USA recorded 178.4 billion KRW in revenue and 3.8 billion KRW in operating profits. While raw material prices increased starkly because of rising demand for exports of natural gas to Europe, slow demand for MEG products continued, thus resulting in reduced profitability.

Regarding the outlook for the second half of the year, LOTTE Chemical forecasted, “While raw price issues are expected to partially ease due to drop in naphtha prices, concerns on inflation and the resurgence of COVID-19 will worsen global demand, and therefore, increase in profitability will be limited,” while adding, “We will expand R&D on special products to pursue our 2030 vision and to increase sales of high value products, while proceeding with new business plans in hydrogen energy, battery material, and recycled plastics, etc. as planned.”