LG Chem swung to a net loss of Korean won (W) 6bn in the fourth quarter of 2022 from a net profit of W337bn in the same period a year earlier, partly weighed by the nationwide truckers' strike which started in late November, said the company.
Petrochemicals unit posted operating loss of W166bn in Q4 2022, compared with an operating profit of W686bn in the same period of 2021, weighed by reduced output from turnarounds, the truckers' strike and "reduced demand from the spread of COVID-19 in China", the company said in a statement on 31 January.
Full-year 2022 results worsened from the previous year due to poorer demand from the global economic slowdown and increased supply in northeast Asia.
Profitability of products such as ABS and PVC declined last year due to difficulties in hiking prices amid rising oil and feedstock prices.
Petrochemicals market is expected to gradually rebound in 2023 from China's reopening.
The company expects petrochemicals sales of W20.2trillion in 2023, down from the W21.7tr in 2022.
We remind, LG Chem Ltd announced on 20 Jan 2023 that it has completed its previously announced acquisition of AVEO Oncology, a commercial stage, oncology-focused biopharmaceutical company committed to delivering medicines that provide a better life for patients with cancer, in an all-cash transaction with an implied equity value of $571 M on a fully diluted basis. AVEO plans to accelerate the commercialization of new anti-cancer drugs developed by LG Chem Life Sciences. With strong capabilities in early stage of R&D and production process, LG Chem Life Sciences will be in a better position to pursue promising anti-cancer therapies and commercial processes for pre-clinical and early clinical trials, while AVEO, with its broad know-how in clinical development and sales in the US market, oversees clinical development and commercialization. While AVEO is now a wholly owned subsidiary of LG Chem Life Sciences Innovation Center Inc, AVEO will continue to operate under the AVEO Oncology name for a period of time.
mrchub.com