MOSCOW (MRC) -- LG Chem Ltd., South Korea's leading chemicals and battery maker, said its net profit soared nearly 56% in the second quarter from a year ago improved margins in the petrochemical business during the peak season, as per The Korea Herald.
Net income came at 352.9 billion won (USD307.5 million) in the April-June period, a 55.6% hike from a year earlier, the company said in a regulatory filing.
Sales decreased 13.6% on-year to 5.07 trillion won, while operating profit gained 56.7% to 563.4 billion won, it said.
The company said strong demand and increased sales of premium petrochemical products enhanced its profitability in the peak season.
"Despite the regular maintenance of a naphtha cracker center, a rise in average sales prices and robust sales in premium petrochemical products improved the second-quarter earnings," Chief Financial Officer Cho Seok-jae said in a briefing.
"(Ethylen-naphtha) spread is likely to remain stable in the third quarter as well on the back of strong demands and savings in raw materials."
As MRC wrote before, LG Chem Ltd' net profit fell 38.2% in the fourth quarter 2014 from a year ago due to falling oil prices and sluggish global demand. Net income came at 1.09 trillion won (USD1.01 billion) in the October-December period, compared with 1.77 billion won a year earlier. Sales were down 4.8% to 5.37 trillion won on-year in the period, while operating profit fell 26.8% to 231.6 billion won. For all of 2014, operating profit declined 24.8% to 1.31 trillion won, and sales edged down 2.4% to 22.57 trillion
LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. According to ICIS report, it is 15th biggest chemical company in the world in 2011. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.
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