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Lotte Chemical office building. (Photo=Lotte Chemical) |
[Alpha Biz= Reporter Kim Jisun] Lotte Chemical's operating losses widened in Q3 due to a downturn in its basic chemicals business. The company announced on the 7th that it plans to prioritize financial stability through its "Asset-Light" project, aimed at reducing asset weight.
According to Lotte Chemical's preliminary report, the company recorded an operating loss of 413.6 billion KRW on a consolidated basis for Q3, marking a return to losses compared to the same period last year. Revenue increased by 5.6% year-over-year to 5.2 trillion KRW, but net losses reached 513.8 billion KRW, reversing from a profit.
The company explained, “Losses expanded due to delayed demand recovery, falling exchange rates that reduced product spreads, one-time maintenance costs for overseas subsidiaries, and rising shipping costs.”
Lotte Chemical reported operating losses of 135.3 billion KRW in Q1 and 111.1 billion KRW in Q2, with losses expanding significantly in Q3. This rise is attributed to the basic chemicals division, which alone reported a 365 billion KRW loss last quarter, marking four consecutive quarters of losses since the end of last year.
AlphaBIZ Kim Jisun(stockmk2020@alphabiz.co.kr)
