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Photo: Yeocheon NCC’s Yeosu No. 2 Plant. Courtesy of Yeocheon NCC |
[Alpha Biz= Kim Jisun] SEOUL, May 21 — Yeochun NCC continued to post losses in the first quarter, missing out on a broader petrochemical sector recovery driven by improved margins and inventory gains following the Middle East conflict.
The company reported revenue of KRW 1.156 trillion, down 15.8% year-on-year, and an operating loss of KRW 24.2 billion. Although losses narrowed from a year earlier, Yeochun NCC has remained in the red for 18 consecutive quarters, with cumulative losses exceeding KRW 1.1 trillion.
In contrast, peers delivered stronger results. Lotte Chemical returned to profit for the first time in 10 quarters, while LG Chem posted solid earnings in its petrochemical division. Major shareholders DL Chemical and Hanwha Solutions also recorded profits.
Yeochun NCC’s weak performance was attributed to tight inventory management and increased competition from low-cost Chinese products. The Middle East conflict further disrupted operations, with plant utilization dropping to around 55%.
To support the company, Hanwha Solutions and DL Chemical have provided additional credit backing to refinance maturing debt. Meanwhile, a restructuring plan involving plant closures and integration with Lotte Chemical’s Yeosu facility is under government review, with an integrated entity expected to launch within the year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
