DL succeeded in turning to a profit in the first quarter of this year, thanks to strong performance in the petrochemical and energy sectors.
DL announced on the 9th that it expects consolidated revenue of 1.3866 trillion won and operating profit of 105.4 billion won for the first quarter of this year. Compared to the fourth quarter of last year, revenue increased by 6.9%, and it returned to profitability by generating an operating profit of 105.4 billion won from an operating loss in the previous quarter.
Among its major subsidiaries, DL Chemical achieved solid performance despite sluggish conditions in the petrochemical industry. The specialty product area of polybutene (PB) maintained high profitability, and the polyethylene (PE) segment's operating profit increased by 159.9% compared to the fourth quarter of last year, following the successful sale of new licenses in the first quarter.
The medical isoprene (IR) latex producer Kariplex recorded a high operating profit margin of 16.9%. A representative for DL explained that starting in the second quarter of this year, revenue growth is expected as key products produced at the new factory in Singapore, which began commercial production last November, are approved. As for Kraton, it turned to profitability as inventory adjustments were completed and key product market conditions improved.
DL Energy recorded an operating profit of 35.9 billion won, a 116.3% increase from the previous quarter, as seasonal peak periods led to higher electricity sales margins and utilization rates for domestic and international power assets. Glad sustained steady demand from foreign and corporate hotel clients even in the off-peak season, achieving a high operating profit margin of 26.7%.
A representative for DL said, “This year will be challenging for the industry, but we plan to enhance profitability by restructuring our portfolio to focus on cost reduction, operational efficiency improvement, and high-value-added products.”