■ 23 Q1 revenue of 5 trillion 2.4 billion KRW, operating loss of 77 billion KRW posted
■ Basic materials business to secure cost-competitiveness by expanding share of LPG and improve profitability by reducing the amount of general-use products and expanding the amount of high-value products such as solar power materials and secondary battery separator polymers
■ Advanced materials business to maintain strong profitability based on development of high-value compound products tailored to customers and stable supply capacities
■ LOTTE Chemical, “Difficulties are expected in the second half of the year as well, but we will continue our efforts in optimizing operations and our portfolio to improve profitability, while also constructing a new business model by speedily executing future businesses such as the battery materials business, hydrogen energy, and recycling business to achieve our 2030 vision”

LOTTE Chemical (CEO Kim Gyo Hyun) announced on the 8th that its 2023 Q2 tentative performance (consolidated) was 5 trillion 2.4 billion KRW and operating loss was 77 billion KRW.

The 2023 Q2 performance of LOTTE Chemical and its major subsidiaries are as follows.

- The basic materials business recorded 2 trillion 755.7 billion KRW in revenue and 82.8 billion KRW in operating losses. The reverse lagging effect due to the low demand and dropping oil prices and raw material prices due to the globally slow economy was reflected, thus reducing profitability. Plans are to secure cost-competitiveness by expanding share of LPG and improve profitability by reducing the amount of general-use products and expanding the amount of high-value products such as solar power materials and secondary battery separator polymers.

- The advanced materials business recorded 1 trillion 98.8 billion KRW in revenue and 75.1 billion KRW in operating profits.

Increased exports to high-profit regions, improved product spread, and stabilization of transportation costs helped improve profitability. It is expected to maintain strong profitability based on development of high-value compound products tailored to customers and stable supply capacities.

- LOTTE Chemical Titan recorded 543.7 billion KRW in revenue and 111.6 billion KRW in operating losses. Revenue and profitability dropped due to continuing burdens for increased quantities in Southeast Asia as well as slow demand.

- LC USA recorded 149.8 billion KRW in revenue and 7.8 billion KRW in operating profits. As ethane prices stabilized downward, burdens for raw materials were eased, thus making a turnaround.

Meanwhile, from Q2, LOTTE Energy Materials that was acquired in March of this year was reflected in the consolidated income statement, thus putting the spurs to the portfolio diversification strategy of LOTTE Chemical.

LOTTE Chemical stated, “Difficulties are expected in the second half of the year as well, but we will continue our efforts in optimizing operations and our portfolio to improve profitability, while also constructing a new business model by speedily executing future businesses such as the battery materials business, hydrogen energy, and recycling business to achieve our 2030 vision.”