Lotte Chemical maintained a profit trend for a second straight quarter through business restructuring and an expansion of its high value-added portfolio. Lotte Chemical posted second-quarter consolidated revenue of 5.69 trillion won and operating profit of 110.1 billion won. A year earlier, it reported revenue of 4.09 trillion won and an operating loss of 250.4 billion won. Revenue rose 39.2 percent and operating profit returned to the black. From the previous quarter, revenue increased 13.9 percent and operating profit rose 49.9 percent. Operating margin improved to 1.9 percent from 1.5 percent a quarter earlier. Net profit was 194.4 billion won, and net profit attributable to owners of the parent was 219.2 billion won.

The company achieved the results amid persistent global supply chain uncertainty driven by geopolitical instability in the Middle East. It explained that optimised production operations and profitability-focused management helped maintain profitability.

For the first half, it posted revenue of 10.68 trillion won and operating profit of 183.6 billion won. That marked a return to profit from an operating loss of 377.0 billion won a year earlier. First-half revenue rose 18.8 percent from a year earlier, with both scale and profitability recovering.

By division, basic chemicals, which include Lotte Chemical's basic materials business as well as LC Titan, LC USA and Lotte Daesan Petrochemical, posted revenue of 3.94 trillion won and operating profit of 2.3 billion won. Profitability fell from the previous quarter as scheduled maintenance and a lagging effect from feedstock price fluctuations overlapped. With a delay in a global demand recovery and greater feedstock price volatility expected in the third quarter, it plans to continue efforts to improve profitability through optimised production operations and stronger business competitiveness.

The advanced materials division posted revenue of 1.16 trillion won and operating profit of 132.5 billion won. Wider spreads for key products and a strong exchange rate supported the improvement in profitability. The division's 132.5 billion won operating profit exceeded Lotte Chemical's consolidated operating profit of 110.1 billion won, effectively underpinning group earnings.

Lotte Fine Chemical posted revenue of 586.3 billion won and operating profit of 61.9 billion won. It cited the combined impact of higher international prices for key products, a strong exchange rate and increased sales volume. The company said it would continue to push investment and technology development in high-growth, high value-added materials businesses such as semiconductor materials and materials for food, pharmaceuticals and medical use, following the first half.

Lotte Energy Materials posted revenue of 194.2 billion won and an operating loss of 16.9 billion won. Despite higher sales volume, it could not avoid a loss as one-off factors, including a positive lagging effect reflected in the previous quarter, faded. In the third quarter, sales volume is expected to increase on expanding demand for AI and battery foil. The company said it plans to ramp up operations at a new plant to strengthen its ability to respond to customers and broaden its mid- to long-term growth base.

Lotte Chemical is speeding up structural innovation as it carries out restructuring centred on its Daesan and Yeosu plants. The Daesan plant, which completed its spinoff procedure in June, is set to launch an integrated corporation in September. The Yeosu plant is continuing talks with affiliates to build an integrated operating system after approval of its restructuring plan in July. The goal of restructuring at both plants is to improve production efficiency, strengthen cost competitiveness and establish a business structure that can respond flexibly to market changes.

The Yulchon compounding plant, for which it is pushing completion and commercial operation within the year, is also a key task. Through the plant, it plans to enhance production capability for compounding materials and keep increasing the share of high value-added products such as super engineering plastics, pushing the sophistication of its business portfolio.

A Lotte Chemical official said it is proceeding without disruption with strengthening competitiveness through restructuring, advancing its high value-added business portfolio, fostering future growth businesses and improving its financial structure amid uncertainty in the domestic and external business environment surrounding the petrochemical industry. The official said it would also build a sustainable growth base while responding flexibly to market changes and increase corporate value.