Amid a global petrochemical industry downturn, LG CHEM's annual operating profit declined by more than 60%.
LG CHEM reported on the 3rd that its operating profit for the previous year temporarily totaled 916.8 billion won, a decrease of 63.8% compared to the previous year. During the same period, revenue fell by 11.5% to 48.9 trillion won, and net profit dropped by 74.9% to 51.5 billion won. Revenue, excluding the battery division LG Energy Solution, was approximately 27.1 trillion won.
In the fourth quarter of last year, the operating loss was 252 billion won, marking a turn to deficit compared to the same period last year (operating profit of 247.4 billion won). This is the first quarterly loss for LG CHEM since the fourth quarter of 2019 (-27.6 billion won). Revenue and net loss were recorded at 12.3 trillion won and 899.2 billion won, respectively.
During the earnings conference call, Chief Financial Officer (CFO) Cha Dong-seok noted, "This year, we will re-evaluate the economic viability of all investments from scratch and enhance financial soundness through optimal resource allocation," adding, "We will continue our efforts to establish a differentiated competitive advantage through rigorous change and bold challenges."
LG CHEM set its revenue target for this year at 26.5 trillion won. The company foresaw increasing uncertainty in the domestic and external business environment due to the strengthening of protectionist trends in major countries such as the United States and the widening volatility of eco-friendly policies.
This year, the target for annual production capacity of cathode materials has been downgraded from 170,000 tons to 150,000 tons. The Tennessee plant in the United States will maintain its plan for mass production in the second half of 2026 and will sequentially expand its production capacity.
LG CHEM has decided on cash dividends of 1,000 won per common share and 1,050 won per preferred share. The dividend yield is 0.4% for common shares and 0.7% for preferred shares.