DL achieved a record cumulative operating profit of 543.3 billion won in the third quarter of this year, marking the highest performance since the establishment of its holding company. The improvement in profitability at Krayton and the growth of major subsidiaries such as DL Energy and Glad contributed to this success.
On November 3, DL announced its preliminary results for the third quarter, reporting consolidated sales of 1.47 trillion won and an operating profit of 174 billion won. These figures represent increases of 5.9% and 59.1%, respectively, compared to the same period last year.
The operating profit margin for the third quarter was 11.8%, maintaining double digits for the second consecutive quarter. Cumulative sales for the third quarter reached 4.42 trillion won, with operating profit totaling 543.3 billion won, the largest since the holding company's inception.
Among its major subsidiaries, Krayton showed significant improvement. Thanks to restructuring and management efficiency initiatives implemented since last year, Krayton recorded an operating profit of 73.1 billion won in the third quarter, an increase of 70.1 billion won from the previous year. Its cumulative operating profit for the third quarter amounted to 209 billion won.
The company explained that the restructuring of its portfolio, focusing on high-value specialty products and operational efficiency, contributed to the improvement in profitability. Despite external uncertainties such as conflicts in the Middle East, DL maintains its raw material procurement base.
In contrast, DL Chemical experienced a decline in profitability compared to the previous quarter due to the fading effects of temporary price increases linked to the situation in the Middle East and lagging impacts. However, the company noted that it continues to maintain profitability, particularly in its specialty product, polybutene (PB).
DL Energy achieved an operating profit of 62.1 billion won in the third quarter, setting a record for the highest quarterly performance. This was attributed to favorable supply and demand conditions in the U.S. power market and seasonal peak effects. Notably, the increase in electricity sales from U.S. natural gas power plants and the expansion of generation spreads positively impacted performance.
Glad, which oversees the hotel business, also recorded its highest quarterly operating profit, benefiting from an increase in foreign tourist arrivals. The average daily rate (ADR) and occupancy rate (OCC) remained high, resulting in an operating profit margin of 38.6%.
Financial indicators also showed improvement. As of the end of the third quarter, DL's net borrowings stood at 38.236 trillion won, a decrease of 459 billion won from the end of last year. During the same period, the debt ratio fell from 147.5% to 135.3%, a drop of 12.2 percentage points.
A DL representative stated, "The continuous management efficiency at Krayton and the enhancement of the portfolio centered on high-value specialty products are leading to improved profitability, while major subsidiaries in energy and hotels are also achieving record performances, enhancing the group's profit-generating capacity."
The representative added, "We will continue to strengthen stable profit and cash generation through the advancement of our business structure focused on profitability."
Meanwhile, DL Group is expanding business linkages among its affiliates, focusing on the energy sector. DL Energy is responsible for power project development, financing, and operations, while DL E&C handles the design, procurement, and construction (EPC) of power plants and small modular reactors (SMR). Additionally, Daelim is involved in energy logistics and trading, creating a comprehensive business system that spans development, construction, operation, and distribution.
* This article has been translated by AI.
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