Kumho Petrochemical(011780) said on the 7th that it posted an operating profit of 339 billion won on a consolidation basis in the second quarter of this year. It rose 419.9% from a year earlier.
Revenue for the same period was 2.2681 trillion won, up 27.9%. Net income was 300.3 billion won, up 13.2%.
A Kumho Petrochemical official said, "Results improved as sales of core businesses—synthetic rubber and phenol derivatives—increased," and added, "Amid growing concerns over feedstock supply disruptions due to the U.S.-Iran war during the second quarter, we flexibly adjusted production and sales volumes and minimized inventory to improve profitability."
The NB latex business, a glove raw material, also returned to the black as glove manufacturers increased output. The institutional sector for synthetic resins likewise saw improved profitability as product prices rose on concerns over materials and supplies sourcing.
The phenol derivatives business saw sales volumes fall due to maintenance on key facilities, but it returned to the black as product prices strengthened. The automotive high-performance rubber materials (EPDM, TPV) business also improved profitability from the previous quarter as the gap widened between product sales prices and materials and supplies prices.
Kumho Petrochemical said it expects profitability in some businesses to decline in the third quarter due to seasonal off-peak conditions and weaker demand in downstream industries.