Lotte Chemical said on May 11 it recorded first-quarter 2026 revenue of 4.99 trillion won and operating profit of 73.5 billion won, swinging to a profit from a year earlier. Net profit was 33.5 billion won. It raised profitability through more efficient production operations, including more agile feedstock procurement and flexible operating rate adjustments, despite expanded geopolitical risks in the Middle East and pressure from rising raw material prices.

By business segment, basic chemicals (Lotte Chemical basic materials business, LC Titan and LC USA) posted revenue of 3.45 trillion won and operating profit of 45.5 billion won. A spread improvement driven by higher selling prices and a positive feedstock lagging effect led the return to profit. The advanced materials segment posted revenue of 1.02 trillion won and operating profit of 61.5 billion won. The end of year-end inventory adjustments and a recovery in downstream demand increased sales volumes.

Results at subsidiaries also improved. Lotte Fine Chemical posted revenue of 510.7 billion won and operating profit of 32.7 billion won, helped by rising international prices for key products and higher sales. Lotte Energy Materials posted revenue of 159.8 billion won but recorded an operating loss of 5.0 billion won. Uncertainty in downstream industries persisted, but it reduced the size of the loss due to a lagging effect from rising feedstock prices.

It also pursued measures to stabilise the domestic supply chain. It adjusted the schedule for planned maintenance at its Yeosu plant to produce raw materials for medical IV fluid bags without disruption, and it pre-emptively supplied raw materials for construction concrete admixtures to a level equal to 140 percent of domestic demand.

It is also accelerating a business restructuring. The Daesan plant is being 추진ed with a goal of launching an integrated corporation in September after a physical split in early June, while the Yeosu plant has been working step by step with partner companies since submitting a business restructuring plan in March. In the second quarter, the company expects the impact of planned maintenance and external uncertainty to continue for both basic chemicals and advanced materials, but it forecasts profitability will be maintained as the spread improvement effect continues.

It is also pushing to expand higher value-added businesses. Through the country’s largest single compounding plant, scheduled for completion within the year, it plans to produce 500,000 tonnes a year of engineering plastics (EP). It will later expand its production lineup to the high-performance 'Super EP' product group. Separately, Lotte Energy Materials is expected to increase sales volumes in the second quarter as customers accelerate a shift to North American energy storage systems (ESS) and as shipments of high value-added circuit foil for AI begin in earnest.

A Lotte Chemical official said it will continue to focus on optimising production operations so it can supply materials stably while closely monitoring external conditions and market situations. The official added that it will strengthen competitiveness in basic chemicals through business restructuring and will push ahead with mid- to long-term future growth strategies through a balanced portfolio.