MOSCOW (MRC) -- Lotte Chemical said Friday its second-quarter net profit fell 88.7 percent from a year earlier due to low demand amid the coronavirus pandemic, said Koreantimes.
For the April-June period, Lotte Chemical posted a net profit of 30.6 billion won (USD25.8 million), compared with a profit of 271.2 billion won a year earlier, the company said in a regulatory filing.
Lotte Chemical said the decreased profit is blamed on lower prices of its major products due to slowing demand in the markets amid increased uncertainty over the COVID-19 pandemic and trade disputes between the United States and China.
Lotte Chemical's operating profit plunged 90.5 percent year-on-year to 32.9 billion won in the second quarter. Sales fell 32.1 percent to 2.68 trillion won from 3.94 trillion won during the same period, it said.
Shares in Lotte Chemical fell 2.51 percent to 174,500 won, underperforming the broader KOSPI's 0.48 percent gain. Lotte Chemical manufactures a wide range of petrochemical products, including polymers, monomers, basic petrochemicals, construction and interior materials.
Lotte Chemical is a petrochemical unit of Lotte Group, a South Korean retail-to-chemicals conglomerate. Kumho Petro Chemical reported its second-quarter net income of 99.8 billion won, down 13.4 percent from a year earlier.
The company said in a regulatory filing that operating income for the April-June period fell 13 percent year-on-year to 120.1 billion won. Revenue decreased 20.6 percent to 1.02 trillion won. (Yonhap).
We remind that, as MRC informed before, Lotte Chemical Titan Holding (Kuala Lumpur, Malaysia), an affiliate of Lotte Chemical (Seoul, South Korea), announced that the group's ethane cracker and ethylene glycol (EG) plant at Lake Charles, Louisiana, commenced commercial operations in August, 2019. Lotte Chemical USA, a 40/60 joint venture (JV) between Lotte Chemical Titan and Lotte Chemical, holds the Lotte group's stakes in the plants. The USD3.1-billion ethane cracker is an 88/12 JV between Lotte Chemical USA and Axiall, a subsidiary of Westlake Chemical. Lotte has invested about USD1.9 billion in the JV. Lotte Chemical USA owns 100% of the EG plant.
According to MRC's DataScope report, PE imports to Russia dropped in January-June 2020 by 7% year on year to 328,000 tonnes. High density polyethylene (HDPE) accounted for the main decrease in imports. At the same time, PP imports into Russia rose in the first six months of 2020 by 21% year on year to 105,300 tonnes. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.