S Korea LG Chem Q2 net income plunges on poor battery earnings

SINGAPORE (ICIS)–LG Chem’s second-quarter net income plunged year on year to won (W) 60 billion ($43m), weighed down by poor earnings at its battery unit LG Energy Solution, the South Korean producer said on Thursday.

Group results

in Korean won (W) billion	Q2 2024	Q2 2023	% Change
Sales	12,300	14,336	-14.2
Operating profit	406	618	-34.3
EBITDA	1,562	1,595	-2.1
Net income	60	671	-91.1

Q2 sales at company’s petrochemicals unit rose by 8.9% year on year to W4.97 billion.

LG Chem’s petrochemicals unit swung to a Q2 operating profit of W32 billion, reversing the W13 billion loss in the same period of 2023.

A gradual recovery in the supply/demand balance for LG Chem’s petrochemical products is expected in Q3, but “profitability improvement is expected to be limited due to the delay in global demand recovery and rising freight rate”.

LG Energy Solution’s Q2 operating profit fell by 57.7% year on year to W195 billion, with sales down 29.8% at W6.16 trillion.

LG Chem holds a controlling 81.8% stake in LG Energy Solution, the leading car battery maker in the country in terms of sales.

($1 = W1,386)