[Alpha Biz= Reporter Kim Jisun] LG Chem reported a third-quarter operating loss in its petrochemical division, prompting the company to scale back its capital expenditure target from the initially planned 4 trillion KRW to around 2.5 trillion KRW. This reflects LG Chem’s conservative investment approach amid challenging market conditions.

According to its Q3 earnings release on October 28, LG Chem posted consolidated revenue of 12.6704 trillion KRW and an operating profit of 498.4 billion KRW, marking a year-over-year decrease of 6.1% in revenue and 42.1% in operating profit. Quarter-over-quarter, however, revenue increased by 3.0%, while operating profit rose by 22.8%.

The petrochemical segment’s performance was particularly weak, impacted by temporary rises in raw material and shipping costs, along with a decline in foreign exchange rates, resulting in an operating loss of 38.2 billion KRW. While LG Chem expects improved profitability in Q4 due to lower raw material costs, higher operating rates at new facilities, and increased sales in North America and Europe, a major recovery remains uncertain.

 

 

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