LG Chem Q2: KRW 14.1759tn revenue and KRW 599.6bn operating profit
- Consolidated Q2 revenue KRW 14.1759 trillion (+19.0% YoY) and operating profit KRW 599.6 billion (+25.8% YoY); QoQ revenue +15.8% and operating profit turned to a profit.
- Petrochemicals: revenue KRW 5.3289 trillion and operating profit KRW 426.5 billion; sales volume fell after NCC Plant 2 suspension, but inventory lag improved spreads.
- Advanced Materials: revenue KRW 999.0 billion and operating profit KRW 19.9 billion, driven by higher cathode prices, expanded separator shipments and new electronic materials mass production.
- LG Energy Solution: revenue KRW 7.5602 trillion and operating profit KRW 113.3 billion, supported by EV cylindrical/pouch battery demand and expanded North American ESS shipments.
Consolidated results
LG Chem reported consolidated Q2 revenue of KRW 14.1759 trillion and operating profit of KRW 599.6 billion, up 19.0% and 25.8% year‑on‑year respectively; quarter‑on‑quarter revenue rose 15.8% and operating profit turned to a profit. CFO Dong Seok Cha cited improved spreads from a petrochemicals inventory lag and expanded sales in Advanced Materials and Life Sciences.
Petrochemicals
The Petrochemicals Company posted revenue of KRW 5.3289 trillion and operating profit of KRW 426.5 billion. Sales volumes declined after the suspension of NCC Plant 2 in Yeosu, but profitability improved due to a favorable inventory lag from rising feedstock prices and wider product spreads. Q3 faces uncertainty from an unfavorable lagging effect of falling feedstock prices and higher logistics costs.
Advanced Materials
Advanced Materials recorded KRW 999.0 billion revenue and KRW 19.9 billion operating profit, driven by higher battery materials sales (rising cathode prices and more separator shipments) and full‑scale mass production of new electronic materials. Q3 expects growth in cathode shipments to new customers, rising ESS separator sales and continued strength in semiconductor and high‑value electronic materials.
Life Sciences
Life Sciences reported KRW 369.0 billion revenue and KRW 60.0 billion operating profit, lifted by increased export shipments. Q3 revenue may decline slightly as some export volumes, including vaccines, shift to Q4, and profitability is expected to fall due to higher R&D expenses.
LG Energy Solution
Subsidiary LG Energy Solution posted KRW 7.5602 trillion revenue and KRW 113.3 billion operating profit, supported by demand for cylindrical and pouch EV batteries, expanded North American ESS production capacity and lower fixed costs. Q3 revenue growth is expected from accelerating North American ESS demand and stable EV battery shipments.
Farm Hannong
Farm Hannong reported KRW 274.1 billion revenue and KRW 25.4 billion operating profit, aided by expanded crop protection sales and advance fertilizer purchasing. Q3 profitability is expected to decline year‑on‑year due to rising raw material costs from exchange rates and increased R&D expenses.
Source: LG Chem
