LG Chem posted a net loss

Recently, LG Chem reported a net loss of 2022 billion won in the fourth quarter of 60, compared with a net profit of 3370 billion won in the same period the previous year. LG Chem's operating profit for the fourth quarter of 2022 decreased by 74.4% y/y to KRW 7490 billion from KRW 910 billion, and sales increased by 26.6% y/y to KRW 3.8 trillion.

LG Chem's petrochemicals business recorded an operating loss of KRW 1660 billion. In the fourth quarter of 2022, petrochemical sales decreased by 21% year-on-year to 4.2 trillion won. The performance of the petrochemical business was reportedly affected by factory shutdowns and strikes by Korean trucking unions. LG Chem said the petrochemical market continued to deteriorate due to increased supply in Northeast Asia and a slowing global economy. For the petrochemical business in 2023, LG Chem predicts that the oversupply in the upstream market will continue due to capacity expansion in Northeast Asia. But overall, the market will gradually improve.

The operating profit of LG Chem's Advanced Materials Division increased significantly to KRW 10 billion from KRW 180 billion in the same period of the previous year. Its sales increased 60% y/y to KRW 1.8 trillion. The increase in profit was due to higher metal prices and the expansion of high value-added products such as semiconductors and organic light-emitting diode (OLED) materials. The operating profit of the company's energy solutions division more than tripled to KRW 2022 billion in the fourth quarter of 760 from KRW 2370 billion in the same period of the previous year. Sales rose 4 percent to 4.93 trillion won from 8.5 trillion won a year ago.