■ 2023 tentative consolidated business performance posts 19.9491 trillion KRW and operating loss of 333.2 billion KRW... Reduced deficit through assertive efforts for lowering costs
■ LOTTE Chemical, “We will pursue advancement and improvements to the business portfolio in order to actively respond to changes in the business environment of the petrochemical industry and improve profitability through efficient management of existing petrochemical businesses”... “Look to expand high-value specialty materials and customer diversification while reinforcing strategic investments and executive force of battery materials/hydrogen energy businesses”

On the 7th, LOTTE Chemical announced that based on consolidated for 2023, it recorded ▲ revenue of 19 trillion 949.1 billion KRW and ▲ operating loss of 333.2 billion KRW.

Revenue decreased by about 10.4% compared to 2022, but the deficit was reduced through assertive efforts to lower costs.

Regarding last year’s business performance, LOTTE Chemical stated, “The weak market conditions of the petrochemical industry are ongoing due to reduced demand and dropping product prices resulting from global uncertainties, as well as increased supply burdens caused by large-scale ethylene plant expansions in China,” while adding, “We will pursue advancement and improvements to the business portfolio in order to actively respond to changes in the business environment of the petrochemical industry and improve profitability through efficient management of existing petrochemical businesses.”

LOTTE Chemical further commented, “We will look to expand high-value specialty materials and customer diversification while reinforcing strategic investments and executive force of battery materials/hydrogen energy businesses.”

The 2023 Q4 performance of LOTTE Chemical and its major subsidiaries are as follows.

- The basic materials business recorded 2 trillion 766.4 billion KRW in revenue and 166.4 billion KRW in operating losses. Revenue increase slightly compared to the previous quarter at 2.8%, but profitability was low because of reduced spread resulting from rising naphtha prices. Uncertainties on the recovery of global demand are expected to continue, but it is anticipated that supply burdens will gradually ease as new expansions will decrease in the future.

- The advanced materials business recorded 967.3 billion KRW in revenue and 36.4 billion KRW in operating profits. With the beginning of the seasonal slow season, sales dropped and sales prices were lowered, causing reduced profitability. It is expected that profitability will slightly decrease due to delayed recovery of front industries and rising transportation costs resulting from logistical issues.

- The subsidiary LOTTE Chemical Titan recorded 520.7 billion KRW in revenue and 61.2 billion KRW in operating loss. Reduced demand and increased naphtha prices caused the spread to lower, thus resulting in low profitability compared to the previous quarter.

- The subsidiary LC USA recorded 140.8 billion KRW in revenue and 9 billion KRW in operating loss. Due to the price drop in ethane, which is a raw material, revenue increased by about 16.1% compared to the previous quarter, and the deficit was lowered. Profits are expected to improve through downward stabilization of ethane prices and rise in MEG (mono ethylene glycol) prices.

Meanwhile, LOTTE Chemical chose to give cash dividends of 3,500 KRW per ordinary share for the purpose of stockholder dividend stability and to improve stockholder value, and this is expected to be finally approved at the regular general meeting of stockholders in March.