LOTTE Chemical narrowed its operating loss to 127 billion won (US$94.7 million) in the first quarter, an improvement from the 234 billion won loss in the previous quarter, despite operational disruptions including a blackout at its Daesan plant.
The South Korean petrochemical giant reported sales of 4.9 trillion won for the January-March period, nearly flat from the previous quarter but down 3.6% from a year earlier. Net loss improved to 246 billion won from 1.14 trillion won in Q4 2024, though still wider than the 60 billion won loss recorded in the same period last year.
The company’s Advanced Materials division emerged as a bright spot, with operating profit surging 145% quarter-on-quarter to 73 billion won, driven by stabilizing raw material costs, recovering demand, and favorable currency effects. Meanwhile, the Basic Chemical segment’s deficit narrowed by 38.5% to 108 billion won.
LOTTE Fine Chemical, which is 43.5% owned by LOTTE Chemical, saw its operating profit jump 54.6% to 19 billion won, supported by higher prices and increased sales volume. However, LOTTE Energy Materials continued to struggle with a 46 billion won operating loss as EV demand remained sluggish.
Looking ahead, the company warned that while raw material prices show downward stabilization, overall profitability is expected to remain flat due to scheduled maintenance at the Daesan plant and overseas subsidiaries. The company is proceeding with various investment projects, including the Indonesia Cracker Project scheduled for mechanical completion in the first half of 2025.
