MOSCOW (MRC) -- LG Chem announced its 3Q 2022 business performance with sales of Won 14.1777 trillion and operating profits of Won 901.2 bn. Sales rose 33.8% year-over-year and operating profits increased 23.9%, said the company.
Compared to the previous quarter, sales increased by 15.8% and operating profits grew by 2.6% respectively. The Petrochemicals Company recorded sales of Won 5.4931 trillion and operating profits of Won 92.6 bn. Profitability dropped due to worsened spread of major products because of the decreasing demands as a result of growing gas prices and global inflation.
It is expected that market conditions will be tough in 4Q 2022 due to the ongoing slack in global demand and increased supply, but it is expected that it will hit bottom in the 2H 2022 and the market will gradually begin to recover. The Advanced Materials Company recorded sales of Won 2.5822 trillion and operating profits of Won 415.8 bn. Sales grew continuously as there was increased shipping of battery materials and rise in sales prices, and as the weight of the cathode business increased despite weak IT/semiconductor downstream markets, profitability also expanded.
Sales in cathodes are expected to decrease due to drops in metal prices in 4Q 2022, but growth trends are expected to continue through an increase in stable shipping volumes in the future. The Life Sciences Company recorded sales of Won 225.2 bn and operating profits of Won 5.8 bn. Despite growth in sales of major products such as growth hormones, Eucept, etc, profitability dropped because of delays in the recovery of the Chinese aesthetic business, and growth in R&D costs. Growth in sales is expected in 4Q 2022 as shipping of major products such as vaccines and growth hormones are slated to increase, and it is also expected that R&D costs will also rise as clinical studies for global new drug projects will be executed.
We remind, LG Chem may extend maintenance at its naphtha cracker for a month into December, a company official said on Wednesday, to deal with unattractive cracking margins. The company had started planned maintenance for its 1.16-MMt Yeosu cracker at the end of September. It was expected to last until November.