LG Chem Petrochemical Unit Returns to Profit
The chemical maker reported consolidated revenue of 26.4227 trillion won for the first half of 2026.
The chemical maker reported consolidated revenue of 26.4227 trillion won for the first half of 2026. LG Energy Solution contributed 53.4% of this total, followed by the petrochemical division at 36.5%, advanced materials at 5.6%, life sciences at 2.6%, and common and other sectors at 1.9%.
Profitability in the petrochemical division recovered significantly, with an operating profit of 591.294 billion won for the first half of 2026. This represents a turnaround from the 356.378 billion won operating loss recorded in the same period of the previous year. The company attributed the second quarter improvement to expanded spreads and positive inventory lagging effects resulting from rising raw material costs, which offset sales declines caused by the shutdown of the Yeosu 2NCC plant.
Other business segments showed mixed results. The life sciences division recorded an operating profit of 93.732 billion won. Conversely, the advanced materials division reported an operating loss of 23.409 billion won. LG Energy Solution also recorded an operating loss of 94.453 billion won for the period.
To manage its portfolio, the company is shifting toward high-value products in advanced materials, focusing on high-nickel cathode materials, separators, and electronic materials for semiconductors and OLEDs. The company also decided to sell its Water Solutions business in 2025. In the common and other sector, the company is transitioning its fertilizer business toward high-value specialty products and continuing research and development in seeds to expand overseas sales.
Total consolidated borrowings stood at 8.1015 trillion won at the end of the first half of 2026, down from 8.8467 trillion won at the end of the previous year. This total includes 3.9661 trillion won in short-term borrowings and current portions of long-term debt, and 4.1354 trillion won in long-term borrowings and bonds.
The company expects profitability in the petrochemical division to face pressure in the third quarter. This outlook is based on anticipated negative lagging effects from a downward trend in raw material prices and rising logistics costs.