LG Chem disclosed on the 29th that last year, on a consolidation basis, sales fell 5.7% from a year earlier to 45.9322 trillion won, while operating profit rose 35% to 1.1809 trillion won. During the same period, net loss swung to a deficit of 977.1 billion won.
Chief Financial Officer Cha Dong-seok of LG Chem said, "Amid rapidly changing external uncertainties, key businesses such as petrochemicals and battery materials posted weak results," and added, "By simultaneously pursuing the advancement of our business portfolio to strengthen future competitiveness, strictly executing facility investment (CAPEX), and liquidating asset holdings, we maintained cash flow in the black."
The operating loss in the fourth quarter last year was 413.3 billion won, widening from 261.0 billion won in the same period a year earlier. Fourth-quarter sales and net loss were tallied at 11.1971 trillion won and 1.5728 trillion won, respectively.
Excluding subsidiary LG Energy Solution, LG Chem's sales last year were about 23.8 trillion won. Considering the external business environment and other factors, LG Chem set this year's sales target at 23 trillion won.
Regarding this year's business outlook, Cha said, "We will focus on securing future growth engines by institutional sector, including petrochemicals, advanced materials, and life sciences," and added, "When selling LG Energy Solution equity, we will return 10% of the proceeds to shareholders and do our best to enhance shareholder value."
LG Chem said that although no dividends were generated under its dividend policy last year, it decided to pay 2,000 won per share as a shareholder return. Going forward, when dividend revenue from LG Energy Solution begins, the plan is to expand the consolidation dividend payout ratio to 30%.