S Korea’s LG Chem swings to Q4 net loss after truckers’ strike
Nurluqman Suratman
01-Feb-2023
SINGAPORE (ICIS)–LG Chem swung to a net loss of Korean won (W) 6bn in the fourth quarter of 2022 from a net profit of W337bn in the same period a year earlier, partly weighed by the nationwide truckers’ strike which started in late November.
Korean Won (W) billion | Q4 2022 | Q4 2021 | % change | 2022 | 2021 | % change |
Sales | 13,852 | 10,935 | 26.7% | 51,865 | 42,600 | 21.7% |
Operating profit | 191 | 749 | -74.5% | 2,996 | 5,026 | -40.4% |
Net income | -6 | 337 | 2,196 | 3,954 | -44.5% |
– Petrochemicals unit posted operating
loss of W166bn in Q4 2022, compared with an
operating profit of W686bn in the same period
of 2021, weighed by reduced output from
turnarounds, the truckers’ strike and “reduced
demand from the spread of COVID-19 in China”,
the company said in a statement on 31
January.
– Full-year 2022 results worsened from the
previous year due to poorer demand from the
global economic slowdown and increased supply
in northeast Asia.
– Profitability of products such as ABS and PVC
declined last year due to difficulties in
hiking prices amid rising oil and feedstock
prices.
OUTLOOK
–
Petrochemicals market is expected to gradually
rebound in 2023 from China’s reopening.
– The company expects petrochemicals sales of
W20.2trillion in 2023, down from the W21.7tr in
2022.
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