finance
Lotte Chemical Swings to Modest Q1 Profit on Temporary Feedstock Cost Lag
Lotte Chemical Corp. swung to a net profit of 33.5 billion won in the first quarter, reversing a year-earlier loss, as lower feedstock costs from the lagging effect of crude oil prices boosted margins. Revenue rose 1.8 percent to 4.99 trillion won. The South Korean company has been restructuring its petrochemical division since early 2025.
May 11, 3:38 AM·1m read1 source
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Lotte Chemical Corp. 3 billion won a year earlier. The chemical arm of South Korea's retail conglomerate Lotte Group announced the results on May 11, 2026.
6 billion won in Q1 2025. 99 trillion won. Yonhap reported that Lotte Chemical attributed the return to profit to improved margins supported by the lagging effect of feedstock costs.
The lagging effect is the time gap between changes in crude oil prices and their impact on production costs. An improved spread between raw material costs and product selling prices helped the company offset risks from global supply chain volatility and rising feedstock prices linked to tensions in the Middle East.
Lotte Chemical produces basic materials such as polyethylene and ethylene used in plastics and industrial chemicals applied in construction, automotive and other sectors.
45 trillion won in Q1 2026. 02 trillion won in the same period. The company has been restructuring its loss-making petrochemical division since early 2025 to improve facility utilization.
It is improving its financial position through the sale of non-core assets as part of that effort. Lotte Chemical said it plans to continue optimizing operations, restructuring its petrochemical business and improving its portfolio mix to strengthen profitability.
“Lotte Chemical said it returned to profit in the first quarter on improved margins supported by the lagging effect, the time gap between changes in crude oil prices and their impact on production costs." — Yonhap reported. The earnings announcement comes as the company continues efforts launched more than a year ago to address persistent losses in its core petrochemical operations. Sales from the two main divisions accounted for the bulk of the 4.99 trillion won in quarterly revenue. The company did not disclose further breakdowns or future numerical guidance in the filing.”
