LOTTE Chemical Announces 2022 Business Performance
■ 2022 business performance (consolidated, tentative): Revenue 22 trillion 276.1 billion KRW, operating loss 758.4 billion KRW
■ 2022 Q4 business performance: Revenue 5 trillion 495.9 billion KRW, operating loss 395.7 billion KRW
■ LOTTE Chemical, "Strengthen profitability by acquiring Iljin Materials and expanding high-value products, while becoming a leading company of green energy and specialty materials by pursuing future new businesses such as hydrogen, battery, and eco-friendly products in earnest"
On the 9th, LOTTE Chemical announced that based on consolidated for 2022, it recorded ▲ revenue of 22 trillion 276.1 billion KRW and ▲ operating loss of 758.4 billion KRW. Revenue compared to the previous year increased by 22.9%.
Regarding the 2022 business performance, LOTTE Chemical stated, “External uncertainties continued such as China’s COVID-19 lockdown, continuation of the Russia-Ukraine War, drop in product price and demand due to the slow global economy, and rising material prices,” and added, “Despite the difficult business environment, it was a year in which we established Vision 2030 to procure the three major new growth engines in battery materials, hydrogen energy, and recycling, and decided to invest in future businesses by acquiring Iljin Materials, while establishing the basis for sustainable growth such as promoting the sale of the non-core overseas subsidiaries, LOTTE Chemical Pakistan (LCPL).”
The previous Q4 performance recorded revenue of 5 trillion 495.9 billion KRW, which was a decrease of 3.3% compared to the previous quarter, while operating losses were recorded at 395.7 billion KRW. Compared to the same quarter of the previous year, revenue rose by 6.5%, but operating profits switched to a deficit.
The 2022 Q4 performance of LOTTE Chemical and its major subsidiaries are as follows.
- The basic materials business recorded 3 trillion 167 billion KRW in revenue and 285.7 billion KRW in operating losses. As oil prices gradually stabilized, the burden for material prices slightly eased, but it had low profitability due to a drop in demand as the global economy continued to stay slow.
- The advanced materials business recorded 1 trillion 79.4 billion KRW in revenue and 32 billion KRW in operating profits. Revenue dropped slightly compared to the previous quarter due to decreased product demand, but as the prices of major raw materials stabilized and marine transportation costs dropped, profitability improved.
- The subsidiary LOTTE Chemical Titan recorded 620.4 billion KRW in revenue and 111.7 billion KRW in operating loss. Drop in product prices and weak demand resulted in low profitability.
- The subsidiary LC USA recorded 207.5 billion KRW in revenue and 25.6 billion KRW in operating loss. Stabilized prices of the raw material ethane eased price burdens, but the industry continued to stay slow due to global MEG supply issues.
Regarding the outlooks for 2023, LOTTE Chemical stated, "Uncertainties such as the reorganization of the US and China’s global supply chain and global inflation, and uncertainties in the external environment such as supply surplus resulting from the building of additional facilities in China are expected to continue for a while,” while adding, "We will strengthen profitability and enhance corporate value based on diversification of our business portfolio by acquiring Iljin Materials and expanding high-value products, while making this year one to become a leading company of green energy and specialty materials by continuously investing in and visualizing future new businesses such as hydrogen, battery, and eco-friendly products.”
Meanwhile, LOTTE Chemical chose to give cash dividends of 3,500 KRW per ordinary share, and this is expected to be finally approved at the regular general meeting of stockholders in March.