SEOUL, Jan. 31 (Korea Bizwire) — LG Chem Ltd., South Korea’s leading chemicals producer, saw its profit shrink 40.4 percent in 2022 from a year earlier due mainly to sluggish petrochemical demand.
Operating income reached 2.99 trillion won (US$2.43 billion) in the January-December period, compared with 5.02 trillion won logged the previous year, the company said in a regulatory filing.
Annual sales grew 21.8 percent on-year to 51.8 trillion won, buoyed by the robust growth in its battery-making subsidiary, LG Energy Solution Ltd. and the advanced materials segment LG Chem said.
Excluding LG Energy Solution, the sales stood at 30.9 trillion won.
Net profit came to 2.19 trillion won, down 44.5 percent from the previous year’s 3.95 trillion won.
LG Chem said it set the revenue target at 32.2 trillion won for 2023, up 4 percent from that of last year.
LG Chem said it expects to see solid growth in the advanced materials sector, as the output of cathodes, a key component used in electric vehicle batteries, is expected to increase more than 50 percent compared with the current level.
It said it will continue decarbonization efforts in the petrochemical lineup in line with its commitment to lowering carbon emissions.
LG Chem swung to the red in the fourth quarter, with a net loss of 5.9 billion won, in a shift from a profit of 336.8 billion won a year earlier.
Operating income fell 74.5 percent on-year to 191.3 billion won, while sales increased 26.7 percent to 13.85 trillion won.
Shares in LG Chem rose 1.02 percent to 690,000 won on the main Seoul bourse Tuesday, outperforming the broader KOSPI’s 1.04 percent decline. The earnings results were released after the stock market closed.