Lotte Chemical achieved a consolidated operating profit of 110.1 billion won and revenue of 5.6864 trillion won in the second quarter of 2026, marking a successful return to profitability. This improvement comes amid ongoing global supply chain uncertainties due to geopolitical issues in the Middle East, resulting from optimized production operations and a focus on profitability.
In terms of business performance, the basic chemicals segment (including Lotte Chemical's basic materials business, LC Titan, LC USA, and Lotte Daesan Petrochemical) reported revenue of 3.9403 trillion won and an operating profit of 2.3 billion won. Profitability declined compared to the previous quarter due to maintenance impacts and raw material price fluctuations.
The advanced materials segment recorded revenue of 1.1551 trillion won and an operating profit of 132.5 billion won, benefiting from expanded product spreads and favorable exchange rate effects.
Looking ahead to the third quarter, Lotte Chemical plans to continue improving profitability through optimized production operations in both the basic chemicals and advanced materials sectors, despite ongoing external uncertainties.
Lotte Fine Chemical saw improved results with revenue of 586.3 billion won and an operating profit of 61.9 billion won, driven by rising international prices of key products and strong exchange rates. The company intends to continue investing in high-value materials, such as semiconductor materials and food and pharmaceutical materials, following the first half of the year.
Lotte Energy Materials reported revenue of 194.2 billion won but faced an operating loss of 16.9 billion won. Although sales increased, profitability declined as one-time positive effects from the previous quarter were removed. In the third quarter, an increase in sales is expected due to rising demand for AI and battery materials.
Lotte Chemical aims to accelerate its long-term competitiveness through business restructuring and expansion into high-value sectors. The Daesan plant, which completed its split process in June, is set to launch a consolidated entity in September, while discussions are ongoing to establish a unified operational system at the Yeosu plant following the approval of its restructuring plan in July.
This restructuring is intended to enhance production efficiency and cost competitiveness while creating a more flexible business structure to respond to market changes. Additionally, the company is strengthening its specialty business focused on functional materials, based on the Yulchon compounding plant, which is set to be completed and operational by the end of the year.
Market analysts view this return to profitability as a reflection of the effects of Lotte Chemical's restructuring efforts, noting that the advanced materials segment has significantly offset the underperformance of the basic chemicals sector. If the restructuring efforts at the Daesan and Yeosu plants gain momentum, it could lay the groundwork for long-term profitability improvements.
However, challenges remain, including oversupply due to large-scale petrochemical facility expansions in China and uncertainties stemming from a global economic slowdown.
Lotte Chemical stated, "Amid uncertainties in the domestic and international management environment surrounding the petrochemical industry, we are steadily pursuing competitiveness enhancement and the advancement of a high-value-focused business portfolio through restructuring. We will continue to build a sustainable growth foundation while responding flexibly to market changes."
* This article has been translated by AI.
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