LOTTE Chemical recorded an operating loss of 894.8 billion won last year, more than double the loss from the previous year. The company has posted losses for three consecutive years as the global petrochemical industry continues to struggle.
LOTTE Chemical reported that it achieved a revenue of 20.43 trillion won and an operating loss of 894.8 billion won last year, as noted on the 7th. While revenue increased by 2.4% compared to the previous year, the operating loss rose by 157.3%. LOTTE Chemical has continued to record losses for the third consecutive year following 2022 (-762.6 billion won) and 2023 (-347.7 billion won).
A representative from LOTTE Chemical explained, "The ongoing global supply glut and economic downturn are delaying demand recovery, leading to persistent uncertainty regarding the depth of the overall petrochemical business cycle and the timing of recovery."
This year, the company anticipates gradual improvements in business conditions due to decreasing raw material costs, transportation burdens, exchange rate impacts, and global demand expansion factors influenced by economic stimulus policies. The company intends to closely respond to changes in the external environment and focus on innovative activities to secure business competitiveness.
In particular, LOTTE Chemical plans to actively pursue a transition in its business portfolio by expanding high value-added specialties and securing financial soundness. The company will expedite efforts such as asset-light reductions across non-core assets and sales work aimed at downsizing general-purpose operations.
Regarding investment plans, the company intends to reduce expenditures by more than 1 trillion won compared to the previous year. New investments will be reviewed from a conservative perspective, and investment management will be conducted within earnings before interest, taxes, depreciation, and amortization (EBITDA).
LOTTE Chemical decided to pay cash dividends of 1,000 won per common share as part of the settlement of account. This dividend is expected to be finalized at the regular shareholders' meeting in March. Last July, the company distributed an interim dividend of 1,000 won per share.