LOTTE Chemical announces preliminary results for 2026 Q2 …

■ Recorded consolidated revenue of KRW 5.6864 trillion and operating profit of KRW 110.1 billion in Q2 2026… Maintained profitability for the second consecutive quarter through profit-focused operational optimization despite continued uncertainty in the global supply chain.
■ Business restructuring at the Daesan and Yeosu sites progressing smoothly, with the Yulchon compounding plant scheduled to commence operations within the year… Expanding high-value-added specialty businesses and strengthening the foundation for future growth.
■ LOTTE Chemical stated, “Amid significant uncertainties in the domestic and global business environment surrounding the petrochemical industry, we remain firmly committed to strengthening our competitiveness through business restructuring, upgrading our business portfolio with a greater focus on high-value-added products, fostering future growth businesses, and improving our financial structure.” The company added, “Going forward, we will continue to respond flexibly to market changes, build a foundation for sustainable growth, and enhance corporate value.”

LOTTE Chemical announced that it recorded consolidated revenue of KRW 5.6864 trillion and operating profit of KRW 110.1 billion in the second quarter of 2026.

Despite continued uncertainty in the global supply chain due to geopolitical issues in the Middle East, the company remained profitable for the second consecutive quarter through optimized production operations and a continued focus on profitability.

The results of LOTTE Chemical and its major subsidiaries in the second quarter of 2026 are as follows:

The Basic Chemicals business (LOTTE Chemical’s Basic Materials Business, LC Titan, LC USA, and LOTTE Daesan Petrochemical) recorded revenue of KRW 3.9403 trillion and operating profit of KRW 2.3 billion. Profitability declined quarter-on-quarter due to the impact of scheduled maintenance and the lagging effect of fluctuations in feedstock prices.

The Advanced Materials business recorded revenue of KRW 1.1551 trillion and operating profit of KRW 132.5 billion. Profitability improved on wider spreads for major products and favorable foreign exchange effects.

In the third quarter, the Basic Chemicals and Advanced Materials businesses expect external uncertainties to persist, accompanied by a delayed recovery in global demand and increased volatility in feedstock prices. Nevertheless, the company plans to continue its efforts to improve profitability by optimizing production operations and strengthening business competitiveness.

LOTTE Fine Chemical recorded revenue of KRW 586.3 billion and operating profit of KRW 61.9 billion. Performance improved on higher global prices for key products, favorable foreign exchange rates, and increased sales volumes. Continuing its efforts from the first half of the year, the company will further pursue investment and technology development in high-value-added materials with strong growth potential, including semiconductor materials and food and pharmaceutical ingredients.

LOTTE Energy Materials recorded revenue of KRW 194.2 billion and an operating loss of KRW 16.9 billion. Although sales volume increased, profitability declined as one-off factors, including the favorable lagging effect seen in the previous quarter, were no longer present. In the third quarter, sales volumes are expected to increase on growing demand for AI-related materials and battery foil. The company plans to strengthen its ability to respond to customer demand through the full-scale operation of its new plant while expanding its foundation for mid- to long-term growth.

LOTTE Chemical is accelerating efforts to strengthen its mid- to long-term competitiveness by transforming its business structure through restructuring and expanding its high-value-added businesses.

The Daesan plant, which completed its spin-off process in June, is preparing for the launch of an integrated entity in September. Meanwhile, following the approval of its business restructuring plan in July, the Yeosu plant is in discussions with affiliated companies to establish an integrated operating system. Through these initiatives, LOTTE Chemical plans to improve production efficiency and cost competitiveness while building a business structure capable of responding more flexibly to market changes.

The company also plans to strengthen its specialty business with a focus on functional materials, supported by the Yulchon compounding plant, which is scheduled for completion and commercial operation within the year. Through the new facility, LOTTE Chemical aims to enhance its compounding material production capabilities and further upgrade its business portfolio by steadily increasing the proportion of high-value-added products, including super engineering plastics.

LOTTE Chemical stated, “Amid uncertainties in the domestic and global business environment surrounding the petrochemical industry, we are steadily moving forward with strengthening our competitiveness through business restructuring, upgrading our business portfolio with a greater focus on high-value-added products, fostering future growth businesses, and improving our financial structure.” The company added, “Going forward, we will continue to respond flexibly to market changes, build a foundation for sustainable growth, and enhance corporate value.”