The profit of Korean chemical enterprises is dragged down by cost

Recently, major Korean chemical companies have announced the second quarter financial report, and generally ginseng. LG Chemistry and Lotte Chemistry, the largest chemical companies in South Korea, have been dragged down by rising raw materials and declined demand; Jinhu Petrochemical, Hanhua Solutions, S-OIL and other companies with a large number of petrochemical business have declined. However, some petrochemical companies such as SK Innovation and Puxiang Chemistry, Samsung SDI, and Songyuan have increased their profits year -on -year. Boomedies by rising prices, sales of Korean chemical companies in the second quarter have increased.

Head -headed corporate profits have been reduced seriously

The net profit of LG chemistry in the second quarter was 718 billion won, a year -on -year decrease of 54%. The company's quarterly operating profit also decreased significantly, a year -on -year decrease of 59%to 878 billion won, but sales revenue increased by 7%year -on -year to 12.2 trillion won. In the second quarter, the profit of LG Chemical's petrochemical department decreased by 61%year -on -year to 513 billion won, and sales revenue increased by 13.6%year -on -year to 5.9 trillion won. LG Chemical Company predicts that due to the sluggish demand for high oil prices and inflation, the difficulties facing the company in the third quarter will continue. The company plans to make profitability by strengthening sales activities centered on high value -added products.

According to the financial report released by Lotte Chemistry, in the second quarter, the company's net profit decreased by 93%year -on -year to 36 billion won, and sales revenue increased by 26.6%year -on -year to 5.5 trillion won. In the second quarter, the company's business loss was 21 billion won, while the operating profit of 501 billion won in the same period last year. In the second quarter, the basic chemical department of Lotte Chemistry announced the business loss of 8 billion won. The operating profit of the same period last year was 326 billion won, and the sales revenue increased by 36%year -on -year to 3.4 trillion won. Lotte Chemistry said that some reason for the significant decline in net profit in the second quarter was that Lotte stopped working at the production base of Lishui, South Korea. In addition, the weak global demand and the surge of raw materials have also affected the company's profit. Lotte Chemistry warned that due to the weak global demand due to inflation and new crown pneumonia, the prosperity of the company's basic chemical business in the third quarter may further deteriorate.

The cost of raw materials controlled by many companies

In the second quarter, in addition to the two heads, many Korean companies also had a decline in profit decline. The rising costs, and the demand is influencing the profitability of Korean enterprises.

In the second quarter of Jinhu Petrochemical, sales revenue increased by 2%to 2.2 trillion won year -on -year, and net profit decreased by 51%year -on -year to 286.9 billion won. The profitability of the synthetic rubber business of Jinhu Petrochemical has been affected by the decline and competition of the price of T -paddon rubber latex gloves. The business also faces the problem of rising raw material costs. Jinhu Petrochemical predicts that due to weak downstream demand and new production capacity, the market price of butylene in the third quarter will decline. The company added that demand may weaken due to deterioration. The company's expected demand and price will decline for the company.

The chemical business department of Hanhua Solutions announced that the sales revenue in the second quarter was 1.6 trillion won, an increase of 20.3%year -on -year, and the operating profit decreased by 22%year -on -year to 228 billion won. Han Hua's solution believes that the demand caused by economic depression, coupled with the increase in global production capacity, the increase in supply, and the low -density polyethylene (LDPE) market will continue to be sluggish. For polyvinyl chloride business, Hanhua predicts that the market will be weak due to concerns about the global economic recession.

The second quarter of S-Oil's petrochemical business was 18 billion won, a year-on-year decrease of 85.6%, and operating income increased by 8.2%year-on-year to 1.3 trillion won. The company predicts that due to China's new production capacity, the prices of vicro will still fall in the third quarter.

In the second quarter, Xiaoxing's sales revenue increased by 23.8%year -on -year to 766.4 billion won. The company said that profitability was continuously inflated and continuous inventory loss was squeezed.

Special chemical profits are guaranteed

In the second quarter, only a small number of Korean chemical companies' profits increased significantly. These companies have no exception to have "one skill", and their special chemicals, as advantageous products are not affected by the current economic situation, thus obtaining good profits.

In the second quarter, the operating profit of the petrochemical business department of SK Innovation was 76 billion won and sales revenue was 2.8 trillion won. Due to the decline in the cost of petroleum, the influence of inventory value, and the rise in fixed costs, the price difference between dystershopine and raw materials has risen sharply, leading to improvement of profit margins, and the operating profit of petrochemical business has increased from the previous month. SK innovation predicts that PE and PP profit margins in the third quarter will improve. In terms of aromatics, the company predicts that due to new production capacity in Asia, the profit margin of the second half of the second half of the year will be the same as that in the second quarter.

The sales revenue of Puxiang Chemistry in the second quarter of this year was 803 billion won, a significant increase from 480 billion won in the same period last year. In the second quarter, the profit was 36 billion won, a year -on -year increase of 36%. In the second quarter, the sales revenue of the company's battery cathode business increased by more than the year -on -year, from 166.7 billion won in the same period last year to 346.8 billion won, which was mainly increased by lithium and other metal prices.

- END -