LOTTE Chemical Announces Tentative Performance for Q3 of 2022

█ 2022 Q3 revenue 5.6829 trillion KRW, operating loss 423.9 billion KRW…

    Reflecting decreased global demand and negative legging effect (time-difference effect of injecting raw materials)

    due to drop in materials costs

█ LOTTE Chemical, “We will restructure our business to secure stable profitability and move forward with new future businesses such

    as hydrogen energy, battery materials, recycled materials, etc.”

LOTTE Chemical announced its tentative performance (consolidated) for 2022 Q3 as 5.6829 trillion KRW in revenue and 423.9 billion KRW in operating losses.

LOTTE Chemical commented about its Q3 performance saying, “Revenue increased by 3.1% compared to Q2 but the decreased global demand and negative legging effects due to drop in naphtha prices, which is a key raw material, were reflected, thus reducing profitability.”

The 2022 Q3 performance of LOTTE Chemical and its major subsidiaries are as follows.

- The basic materials business recorded 3 trillion 587.4 billion KRW in revenue and 277 billion KRW in operating losses. Revenue increased compared to the previous year due to completion of the regular maintenance of the Yeosu Plant and activation of new facilities, but the legging effect due to drop in raw material costs was reflected, while the decreased global product demand worsened spread, thus lowering profitability.

- The advanced materials business recorded 1 trillion 161.3 billion KRW in revenue and 12.1 billion KRW in operating profits. Profitability dropped due to the slow global economy and reduced demand resulting from COVID-19 lockdowns in the region.

- LOTTE Chemical Titan recorded 725.6 billion KRW in revenue and 130.8 billion KRW in operating losses. Adjustments in activation rates due to slow market conditions and excessive supply to the Southeast Asian market resulted in reduced revenue and profitability.

- LC USA recorded 166.8 billion KRW in revenue and 30.6 billion KRW in operating profits. Strong prices of the raw material ethane and worsened supply of MEG products also lowered profitability.

LOTTE Chemical forecasted Q4 of this year saying, “Difficult industry conditions are expected due to the slow global economy and weak forward industry demands, but profitability is likely to improve significantly due to downward stabilization of raw material prices.”

It also added, “Despite the industry with huge amounts of changes, we will restructure our business and expand our high-value product portfolio to ensure stable profitability, and also speed up investments in new businesses such as hydrogen energy, battery materials, recycled and bio-plastic businesses, etc. to achieve our future vision.”