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LG Chem profit more than doubles on big increases in petchems, battery earnings

October 22/2020

MOSCOW (MRC) -- LG Chem reports that its third-quarter operating profit more than doubled to 902.0 billion South Korean won (USD7.9 million) versus W348.0 billion in the year-ago period, said Chemweek.

Sales were W7.5 trillion, a rise of 8.8% year on year (YOY). The company has not provided a net profit figure.
Profit at LG Chem's petrochemicals division also more than doubled to W721 billion, compared with W321 billion a year earlier. Sales declined by 9.6% YOY to W3.5 trillion. Earnings grew due to improved spreads resulting from increased prices for major products such as acrylonitrile-butadiene-styrene, polyvinyl chloride, and nitrile-butadiene rubber and continued low costs of raw materials. However, the company projects that the petchems unit will be hurt in the fourth quarter due to the traditionally slow demand season. It expects to achieve sound performance due to continued increase in demand for major products."

Sales at LG Chem's new battery business jumped 42% YOY to W3.1 trillion and it achieved a huge increase in operating profit to W168 billion from W700 million in the same period last year. The launch of new electric car models by major European clients, an increase in sales of cylindrical batteries, and an expanded supply of IT products led to higher profit, it says. LG Chem expects fourth-quarter sales to grow and profit to improve through an expanded supply of car batteries and cylindrical batteries for electric vehicles.

Operating profit grew sharply at the advanced materials business to W59 billion, from W510 million in the corresponding period of the previous year. Sales increased 18% YOY to W9.6 trillion.

LG Chems other businesses are life sciences and farm hannong.

As MRC informed earlier, LG Chem will close its plasticizer plant in Naju for about three weeks from the beginning of November due to planned renovations. According to the source, the current production capacity of the enterprise is about 110,000 tonnes of plasticizers per year, and in mid-2021 it will be increased to about 160,000 tonnes per year.

According to MRC's ScanPlast report, Russia's overall PVC production totalled 718,500 tonnes in January-September 2020, down by 0.3% year on year. At the same time, only two producers managed to increase their PVC output.

South Korean LG Chem is one of the largest chemical companies in the world. The company manufactures a wide range of products, from petrochemicals to high-tech plastics.


mrcplast.com
Author:Anna Larionova
Tags:petroleum products, PVC, diizononilftalat plastifikator, EPVC, SPVC, neftegaz, LG Chem.
Category:General News
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