Lotte Chemical Q4 net more than doubles on robust demand

Lotte Chemical Corp., a major South Korean petrochemical company, said Friday its fourth-quarter net profit more doubled from a year earlier on strong demand for its petrochemical products.

The petrochemical unit of Lotte Group posted a net profit of 97.2 billion won ($86.5 million) in the October-December period, up 104.1 percent from a year earlier, the company said in a regulatory filing.

Its operating profit jumped 49.4 percent on-year to 212.5 billion won, while sales fell 12.5 percent to 3.2 trillion won over the period.

The company said profits improved in the last quarter as demand recovery pushed up sale prices of major petrochemical products. Also, advanced materials for information and technology products and vehicles posted strong performances.

Lotte Chemical manufactures a wide range of petrochemical products, including polymers, monomers, basic petrochemicals, construction and interior materials.

For the whole of 2020, Lotte Chemical's net income tumbled 75.5 percent to 185.4 billion won compared with a year ago.

Its operating profit for the year plunged 68.1 percent on-year to 353.3 billion, and annual sales decreased 19.1 percent to 12.2 trillion won.

The company said its revenue was hurt by low demand amid the COVID-19 pandemic and fire at its Seosan naphtha cracking center, which accounts for 21.8 percent of its total sales.

The cracking center in Seosan, some 120 kilometers south of Seoul, produces ethylene, propylene and other petrochemical feedstocks.

Shares in Lotte Chemical jumped 5.19 percent to 284,000 won, outperforming the broader KOSPI's 1.07 percent gain. (Yonhap)