Lotte Chemical said on Tuesday it posted fourth-quarter 2025 revenue of 4.71 trillion won and an operating loss of 433.9 billion won. Revenue fell 1.7 percent from a year earlier and the operating loss widened 85.7 percent.

Full-year consolidated revenue was 18.48 trillion won and the operating loss was 943.6 billion won. Revenue fell 7.1 percent from a year earlier and the operating loss widened 3.2 percent.

By business segment, the basic materials unit posted revenue of 3.34 trillion won and an operating loss of 395.7 billion won. Revenue fell 1.2 percent from the previous quarter. The company cited the start-up of new operations at Lotte Chemical Indonesia (LCI) and the impact of a seasonal off-peak period.

The advanced materials business posted revenue of 929.5 billion won and operating profit of 22.1 billion won. Profitability fell from the previous quarter as sales volumes declined due to the seasonal off-peak period and year-end inventory adjustments by customers.

Lotte Fine Chemical posted revenue of 439.1 billion won and operating profit of 19.3 billion won. Profitability fell as sales volumes declined due to weak demand in downstream industries.

Lotte Energy Materials posted revenue of 170.9 billion won and an operating loss of 33.8 billion won. Results improved as sales expanded for non-EV products, including ESS and circuit foil, despite a decline in sales volume due to stagnating demand in the global EV market.

The company said it sees the situation as a transition period resulting from its efforts to reorganise its domestic commodity petrochemical business. It said it worked to secure optimal operating rates and rationalise operations, and continued to strengthen financial soundness and core business competitiveness through disposal of non-core assets.

A Lotte Chemical official said, "In 2026, we plan to implement our strategy centred on two pillars: reducing the share of commodity petrochemical businesses within our business portfolio and building a foundation for future growth." The official added, "We will accelerate the expansion of high-functionality materials and pursue environmentally friendly energy businesses with speed."

The Yulchon compounding plant is scheduled to be completed this year. Lotte Chemical will use the plant as a base to expand high value-added product lines such as Super EP. Construction of a U.S. cathode foil plant will be completed within the year. The company also plans to gradually expand its battery materials business, including functional copper foil products such as circuit foil for AI.

It is gradually expanding capacity for semiconductor process materials and green materials products for food and pharmaceutical use. It also plans to enhance competitiveness in environmentally friendly energy businesses by bringing an additional 60 MW Ulsan hydrogen fuel cell power plant into operation.