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Biz News Korea(Eng)

LG Chem’s Q3 OP beats market consensus, up 72% on year

Collected: 2017.10.27

Distributed: 2017.10.30

Source: Go Direct

LG Chem Ltd., South Korea’s leading petrochemical company, posted better-than-expected and its best third-quarter earnings and revenue as it benefited from tight supply in petrochemicals following hurricane Harvey in the U.S. and growing battery demand to power electric cars.

According to preliminary figures released on Thursday, LG Chem reported an operating profit of 789.7 billion won ($701.9 million) in the quarter ended September, up 71.7 percent on year and 8.6 percent on quarter. The figure beat market expectations by around 80 billion won.

[Source: LG Chem Ltd.]

Sales reached 6.4 trillion won, up 26.6 percent on year and 0.2 percent on quarter.

Net profit surged 83.4 percent on year to 545.5 billion won but fell 7.6 percent on quarter on a consolidated basis.

Basic materials and chemicals posted all-time high quarterly earnings while the battery unit hit record sales, said Jeong Ho-young, chief financial officer of LG Chem. IT & electronic materials and life science units also performed well, he added.

Basic materials and chemicals, its mainstay business, delivered an operating profit of 755.3 billion won, up 46 percent on year. Prices of ethylene spiked after hurricane Harvey devastated the U.S., disrupting operations at the country’s major refinery and chemical complexes in Texas.

Battery sales also hit a record quarterly high at 1.19 trillion won and extended its earnings gain after swinging back to profit in the second quarter for the first time in six quarters. Brisk sales were driven by increased demand for premium small-sized batteries and batteries for electric cars.

Shares of LG Chem closed Thursday up 2.07 percent at 394,500 won.

By Moon Il-ho and Kim Hyo-jin

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