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LOTTE Chemical announces preliminary results for Q1 2026… Continues stable supply of core industrial materials through optimized production operations.
2026.05.11
LOTTE Chemical announces preliminary results for Q1 2026…
Continues stable supply of core industrial materials through optimized production operations.
■ Recorded KRW 4,990.5 billion in consolidated sales and KRW 73.5 billion in operating profit for the first quarter of 2026, achieving a turnaround from losses in the same period last year… Profitability improved due to raw material lagging effects and optimized production operations.
■ To ensure stable supply of key industrial materials in Korea, including raw materials for medical IV bags and concrete admixtures for construction, adjusted the turnaround schedule at the Yeosu plant and supplied volumes exceeding domestic demand.
■ Accelerating business restructuring in Daesan and Yeosu to strengthen the petrochemical business, while expanding high-value specialty businesses through the completion of Korea’s largest compounding plant in the second half of the year.
■ LOTTE Chemical stated, “We will continue to closely monitor external conditions and market situations while focusing on optimizing production operations to ensure stable material supply,” and added, “At the same time, we will strengthen competitiveness through restructuring of the basic chemicals business and steadily pursue our mid- to long-term growth strategy by building a balanced portfolio.”
■ To ensure stable supply of key industrial materials in Korea, including raw materials for medical IV bags and concrete admixtures for construction, adjusted the turnaround schedule at the Yeosu plant and supplied volumes exceeding domestic demand.
■ Accelerating business restructuring in Daesan and Yeosu to strengthen the petrochemical business, while expanding high-value specialty businesses through the completion of Korea’s largest compounding plant in the second half of the year.
■ LOTTE Chemical stated, “We will continue to closely monitor external conditions and market situations while focusing on optimizing production operations to ensure stable material supply,” and added, “At the same time, we will strengthen competitiveness through restructuring of the basic chemicals business and steadily pursue our mid- to long-term growth strategy by building a balanced portfolio.”
LOTTE Chemical announced on the 11th that it recorded KRW 4.9905 trillion in sales, KRW 73.5 billion in operating profit, and KRW 33.5 billion in net profit based on its preliminary results for the first quarter of 2026.
Despite the expansion of geopolitical risks in the Middle East, which increased global supply chain volatility and raw material prices, the company improved profitability through optimized production operations, including agile feedstock procurement and flexible adjustments to operating rates.
LOTTE Chemical continues to supply key materials to stabilize Korea’s industrial supply chain amid the impact of the Middle East conflict. By adjusting the turnaround schedule at its Yeosu plant, the company ensured uninterrupted production of raw materials for medical IV bags and proactively supplied concrete admixture materials essential for construction at volumes reaching 140% of domestic demand.
The company is also continuing business restructuring efforts to strengthen Korea’s petrochemical industry. The Daesan plant is being pushed forward with the goal of launching the integrated corporation and commencing integrated operations in September following a physical split in early June. The Yeosu plant will also proceed step-by-step in cooperation with partner companies after submitting its business restructuring plan in March.
At the same time, the company plans to expand its functional materials and high-value-added businesses over the mid- to long-term. Through Korea’s largest single compounding plant, scheduled for completion within the year, the company plans to produce 500,000 tons annually of Engineering Plastics (EP), a high-value specialty material. It also plans to expand its production lineup to include high-performance products such as Super EP in the future.
An official from LOTTE Chemical stated, “We will continue to closely monitor external conditions and market situations while focusing on optimizing production operations to ensure stable material supply,” adding, “At the same time, we will strengthen competitiveness through restructuring of the basic chemicals business and steadily pursue our mid- to long-term growth strategy by building a balanced portfolio.”
The first quarter 2026 results of LOTTE Chemical and its major subsidiaries are as follows.
Basic Chemicals (LOTTE Chemical Basic Materials Business, LC Titan, and LC USA) recorded KRW 3,449 billion in sales and KRW 45.5 billion in operating profit. The business returned to profitability due to improved spreads driven by higher selling prices and positive feedstock lagging effects.
Advanced Materials recorded KRW 1,023.3 billion in sales and KRW 61.5 billion in operating profit. Profitability improved due to expanded sales volumes following the completion of year-end inventory adjustments and recovery in downstream industry demand.
For both the Basic Chemicals and Advanced Materials businesses, the company expects profitability to be maintained in the second quarter despite turnaround impacts and prolonged external uncertainties, as spread improvement effects from the previous quarter are expected to continue.
LOTTE Fine Chemical recorded KRW 510.7 billion in sales and KRW 32.7 billion in operating profit. Earnings improved due to rising international prices of major products and increased sales volumes. Profitability is also expected to be maintained in the second quarter amid continued stability in downstream industries.
LOTTE Energy Materials recorded KRW 159.8 billion in sales and an operating loss of KRW 5 billion. Despite ongoing uncertainties in its industries, profitability improved due to positive lagging effects from rising raw material prices. In the second quarter, sales volumes are expected to increase due to accelerated ESS conversion in North America by customers and full-scale shipments of high-value-added circuit foils for AI applications.
Despite the expansion of geopolitical risks in the Middle East, which increased global supply chain volatility and raw material prices, the company improved profitability through optimized production operations, including agile feedstock procurement and flexible adjustments to operating rates.
LOTTE Chemical continues to supply key materials to stabilize Korea’s industrial supply chain amid the impact of the Middle East conflict. By adjusting the turnaround schedule at its Yeosu plant, the company ensured uninterrupted production of raw materials for medical IV bags and proactively supplied concrete admixture materials essential for construction at volumes reaching 140% of domestic demand.
The company is also continuing business restructuring efforts to strengthen Korea’s petrochemical industry. The Daesan plant is being pushed forward with the goal of launching the integrated corporation and commencing integrated operations in September following a physical split in early June. The Yeosu plant will also proceed step-by-step in cooperation with partner companies after submitting its business restructuring plan in March.
At the same time, the company plans to expand its functional materials and high-value-added businesses over the mid- to long-term. Through Korea’s largest single compounding plant, scheduled for completion within the year, the company plans to produce 500,000 tons annually of Engineering Plastics (EP), a high-value specialty material. It also plans to expand its production lineup to include high-performance products such as Super EP in the future.
An official from LOTTE Chemical stated, “We will continue to closely monitor external conditions and market situations while focusing on optimizing production operations to ensure stable material supply,” adding, “At the same time, we will strengthen competitiveness through restructuring of the basic chemicals business and steadily pursue our mid- to long-term growth strategy by building a balanced portfolio.”
The first quarter 2026 results of LOTTE Chemical and its major subsidiaries are as follows.
Basic Chemicals (LOTTE Chemical Basic Materials Business, LC Titan, and LC USA) recorded KRW 3,449 billion in sales and KRW 45.5 billion in operating profit. The business returned to profitability due to improved spreads driven by higher selling prices and positive feedstock lagging effects.
Advanced Materials recorded KRW 1,023.3 billion in sales and KRW 61.5 billion in operating profit. Profitability improved due to expanded sales volumes following the completion of year-end inventory adjustments and recovery in downstream industry demand.
For both the Basic Chemicals and Advanced Materials businesses, the company expects profitability to be maintained in the second quarter despite turnaround impacts and prolonged external uncertainties, as spread improvement effects from the previous quarter are expected to continue.
LOTTE Fine Chemical recorded KRW 510.7 billion in sales and KRW 32.7 billion in operating profit. Earnings improved due to rising international prices of major products and increased sales volumes. Profitability is also expected to be maintained in the second quarter amid continued stability in downstream industries.
LOTTE Energy Materials recorded KRW 159.8 billion in sales and an operating loss of KRW 5 billion. Despite ongoing uncertainties in its industries, profitability improved due to positive lagging effects from rising raw material prices. In the second quarter, sales volumes are expected to increase due to accelerated ESS conversion in North America by customers and full-scale shipments of high-value-added circuit foils for AI applications.
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