Lotte Chemical said on the 8th that it is strengthening its specialty business centered on functional materials, based on the Yulchon compounding plant, which it is pushing to complete and bring into commercial operation within the year. Through this, the company aims to enhance its compounding materials production capacity and continue expanding the share of high-value products such as super engineering plastics.
Lotte Chemical made the remarks during its second-quarter earnings conference call, saying, "Amid uncertainties in the internal and external business environment surrounding the petrochemical industry, we are steadily pursuing competitiveness enhancement through business restructuring, advancement of a high-value-centered business portfolio, cultivation of future growth businesses, and improvement of financial structure."
Lotte Chemical stressed that it is accelerating its efforts to strengthen mid- to long-term competitiveness based on business structure innovation through restructuring and expansion of high-value businesses. The Daesan plant, which completed its spin-off procedures in June, is set to launch an integrated corporation with HD Hyundai Chemical next month. The Yeosu plant is also in discussions with affiliated companies such as Hanwha Solutions and DL Chemical to establish an integrated operating system, following the government's approval of its business restructuring plan last month.
Meanwhile, Lotte Chemical recorded revenue of 5.6864 trillion won and operating profit of 110.1 billion won in the second quarter of this year on a consolidated basis. Revenue increased 39.2% from a year earlier, and operating profit turned to a surplus from a loss of 250.5 billion won in the same period last year. Compared with the previous quarter, revenue rose 13.9% and operating profit increased 49.9%. Following its return to a quarterly profit in the first quarter of this year for the first time in two and a half years, the company further expanded the size of its profit.
By business segment, basic chemicals posted revenue of 3.9403 trillion won and operating profit of 2.3 billion won. Profitability declined from the previous quarter due to the impact of scheduled maintenance and lagging effects from changes in raw material prices.
Advanced materials recorded revenue of 1.1551 trillion won and operating profit of 132.5 billion won. Profitability improved on the back of expanded spreads for key products and favorable exchange rate effects.
Lotte Fine Chemical posted revenue of 586.3 billion won and operating profit of 61.9 billion won. Its performance improved thanks to rising international prices for key products, a strong exchange rate, and increased sales volume.
Lotte Energy Materials recorded revenue of 194.2 billion won and an operating loss of 16.9 billion won.
