Lotte Chemical Corporation (A011170) Earnings Call Transcripts

Lotte Chemical Corporation's Latest Earnings Call - Q1 FY2026

In Q1 2026, Lotte Chemical Corporation reported revenue of KRW 4.99 trillion and an operating profit of KRW 73.5 billion, marking a significant turnaround from previous losses, primarily driven by improved performance in the Basic Chemicals segment. The company highlighted a positive impact from rising raw material prices, contributing to a net income of KRW 33.5 billion. Management maintained a cautious outlook due to ongoing geopolitical risks but indicated proactive measures to secure feedstock and optimize operations.

Reported metrics

Guidance from management

Management maintained a cautious outlook for 2026, citing ongoing geopolitical risks and potential inverse lagging effects from rising naphtha prices. They emphasized the need to closely monitor market conditions and adjust operations accordingly.

What management said

[Interpreted] This is the CFO, Nak-Seon Sung responding to the first part of the question about the gain from the inventory valuation loss reversal as well as the one-off costs. Now first of all, in the first quarter, the reversal in the inventory valuation was in the amount of around KRW 50 billion, thanks to the rise in the naphtha prices as well as the rise in prices of polymer and monomer products. As for others,...

[Interpreted] This is Kwak Giseop from the Corporate Planning division. And I would like to respond to your question about the lagging effect of the feedstock. As you would know, since the Middle Eastern war, there has been positive lagging effect because of the rise in the naphtha prices in the amount of about KRW 250 billion for the feedstock.

What analysts pressed on

Analysts expressed concerns about the potential for an inverse lagging effect due to rising naphtha prices impacting profitability in the second half of 2026. There were also questions regarding the company's ability to navigate the uncertain geopolitical landscape and its impact on future performance.

Main topics on the call

• Revenue Growth and Profitability — Lotte Chemical achieved revenue of KRW 4.99 trillion and an operating profit of KRW 73.5 billion in Q1 2026, indicating a strong recovery. CFO Nak-Seon Sung noted, "Thanks to the rise in naphtha prices as well as the ris...
• Basic Chemicals Performance — The Basic Chemicals division recorded revenue of KRW 3,449 billion and an operating profit margin of 1.3%. Management attributed this improvement to "product selling prices increased, leading to improved spreads," amidst...
• Advanced Materials Recovery — The Advanced Materials division saw sales revenue of KRW 1,023.3 billion and an operating profit of KRW 61.5 billion, reflecting a recovery in downstream demand. The division's OPM improved to 6.0%, signaling a rebound f...
• Geopolitical Risks and Market Outlook — Management expressed concerns over ongoing geopolitical risks, particularly in the Middle East, which could impact future performance. CFO Nak-Seon Sung stated, "Uncertainties in business environment increased due to geo...

Read the full Lotte Chemical Corporation transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 16 Lotte Chemical Corporation earnings call transcripts on record, spanning November 5, 2021 to August 7, 2026. Based on this history, Lotte Chemical Corporation reports semi-annually. The most recent call on file is dated August 7, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

A011170

Exchange

KOSE

Country

KR

Sector

Materials

Industry

Chemicals

Calls on record

16

First call

November 5, 2021

Most recent

August 7, 2026

Reporting cadence

semi-annually