Lotte Chemical Corp.
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Company Background
Lotte Chemical is a core unit of Lotte group, the fifth-largest conglomerate in South Korea.
In terms of sales, Lotte Chemical ranks behind only LG Chem in the domestic chemical industry. It is one of the world's largest producers of chemical products such as polyethylene and ethylene.
Lotte Chemical began as Honam Petrochemical, which was established in 1976 through technological collaboration between companies including Japan's Mitsui group. Lotte group acquired the business in 1979. Honam became Lotte Chemical in 2012, when its management was integrated with Kp Chemical.
In South Korea, Lotte Chemical has the world's biggest ethylene capacity. Its plants in Yeosu, South Jeolla Province, and Seosan, South Chungcheong Province, each have 1 million-ton production systems.
The company is also expanding its international presence.
In 2018, it plans to open a joint plant with U.S. company Axiall in the state of Louisiana. The facility is to produce ethylene from shale gas. This stands to boost Lotte Chemical's ethylene capacity to 3.7 million tons.
In 2010, the South Korean company acquired Malaysia's Titan Chemicals, now called Lotte Chemical Titan Holding.
Seeking to reduce its heavy reliance on commodity chemicals, Lotte Chemical intends to reinforce its water treatment business. In addition, it has research-and-development programs focused on large-scale battery products, such as energy storage systems.
Business Summary
Financial Highlights
| Dec 2019 | KRW | USD |
| Revenue | 15,123.47B | 12,968.34M |
| Gross Profit | 1,878.34B | 1,610.67M |
| Operating income | 1,105.49B | 947.96M |
| Income before tax | 1,063.65B | 912.07M |
| Net income | 816,896.52M | 700.48M |
| EBITDA | 1,837.06B | 1,575.27M |
| Diluted EPS | 20,859.79 | 17.88 |
| Dividends Per Share | 6,700 | 5.74 |
| Total Assets | 20,043.10B | 17,331.57M |
| Total liabilities | 5,989.97B | 5,179.62M |
| Total equity | 13,204.39B | 11,418.04M |
| Operating cash flow | 1,408.91B | 1,208.13M |
| Currency in KRW | Currency in USD |
Historical Data
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 11,713.33B | 13,223.54B | 15,874.51B | 16,073.06B | 15,123.47B |
| Gross Profit | 2,060.10B | 3,249.80B | 3,775.37B | 2,687.41B | 1,878.34B |
| Operating income | 1,611.31B | 2,545.61B | 2,930.11B | 1,946.17B | 1,105.49B |
| Income before tax | 1,444.77B | 2,415.92B | 3,084.68B | 2,006.18B | 1,063.65B |
| Net income | 992,512.35M | 1,835.81B | 2,243.87B | 1,537.08B | 816,896.52M |
| EBITDA | 2,098.98B | 3,174.76B | 3,621.27B | 2,631.21B | 1,837.06B |
| Diluted EPS | 29,458 | 54,488 | 65,625 | 46,073.67 | 20,859.79 |
| Dividends Per Share | 2,500 | 4,000 | 10,500 | 10,500 | 6,700 |
| Total Assets | 11,467.80B | 15,866.83B | 19,550.97B | 20,799.13B | 20,043.10B |
| Total liabilities | 3,912.22B | 6,466.01B | 7,296.20B | 7,254.81B | 5,989.97B |
| Total equity | 7,524.75B | 9,363.11B | 11,489.62B | 12,734.71B | 13,204.39B |
| Operating cash flow | 2,601.78B | 2,680.54B | 3,152.43B | 1,503.36B | 1,408.91B |
| Dec 2015 | Dec 2016 | Dec 2017 | Dec 2018 | Dec 2019 | |
| Revenue | 10,349.26M | 11,397.74M | 14,041.89M | 14,604.99M | 12,968.34M |
| Gross Profit | 1,820.19M | 2,801.09M | 3,339.53M | 2,441.95M | 1,610.67M |
| Operating income | 1,423.66M | 2,194.13M | 2,591.84M | 1,768.41M | 947.96M |
| Income before tax | 1,276.52M | 2,082.35M | 2,728.57M | 1,822.94M | 912.07M |
| Net income | 876.92M | 1,582.33M | 1,984.83M | 1,396.69M | 700.48M |
| EBITDA | 1,854.54M | 2,736.41M | 3,203.22M | 2,390.88M | 1,575.27M |
| Diluted EPS | 26.02 | 46.96 | 58.04 | 41.86 | 17.88 |
| Dividends Per Share | 2.20 | 3.44 | 9.28 | 9.54 | 5.74 |
| Total Assets | 9,780.22M | 13,136.97M | 18,262.54M | 18,640.56M | 17,331.57M |
| Total liabilities | 3,336.50M | 5,353.54M | 6,815.37M | 6,501.89M | 5,179.62M |
| Total equity | 6,417.42M | 7,752.20M | 10,732.45M | 11,413.08M | 11,418.04M |
| Operating cash flow | 2,298.79M | 2,310.43M | 2,788.50M | 1,366.05M | 1,208.13M |
Valuation Measures
| Dec 2019 | |
| PER | 10.73 |
| ROA | 4.00% |
| ROE | 6.29% |
| Operating margin | 7.30% |
| Profit margin | 5.40% |
Key executives
- Co-Chief Executive Officer & Director: Byung-Yeon Lim
- Co-Chief Executive Officer & Director: Gyo-Hyeon Kim
- Co-Chief Executive Officer & Director: Dong-Bin Shin
- Managing Director & Head-Global Operations: Seung-Wook Seo
- Senior Managing Director & Head-Research: Gyeong-Bo Kang
Shareholders
- LOTTE Holdings Co., Ltd. (29.2%)
- Lotte Corp. (24.6%)
- National Pension Service of Korea (8.7%)
- Eastspring Investments (Singapore) Ltd. (2.1%)
- The Vanguard Group, Inc. (1.2%)
- BlackRock Fund Advisors (1.0%)
- Norges Bank Investment Management (0.7%)
- HOTEL LOTTE Co., Ltd. (0.7%)
- Dimensional Fund Advisors LP (0.7%)
- JPMorgan Asset Management (UK) Ltd. (0.5%)
Contact Details
- Website:http://www.lottechem.com
- Address: 14-16/F, Lotte World Tower, 300 Olympic-ro, Seoul, 05551, South Korea
- Phone: +82.2.829.4114
Related Companies
- Lotte Chemical Corp. /Pet Plant/
- Lotte Chemical Poland Sp zoo
- LTC Chemical Pty Ltd.
- Lotte Chemical Alabama Corp.
- Lotte Chemical Usa Corp.
- LOTTE Advanced Materials Co., Ltd.
- LOTTE CHEMICAL (Jiaxing) Corp.
- Lotte Chemical Trading (Shanghai) Corp.
- Sambark Co., Ltd.
- Lotte Chemical Corp. ESOA.
- Lotte Chemical Titan Holding Berhad
Competitors
- LyondellBasell Industries NV
- LG Chem Ltd.
- Korea Petro Chemical Ind. Co., Ltd.
- TK Chemical Corporation
- Hanwha Corp
- Total SE
- Indorama Ventures Public Co. Ltd.
- Formosa Chemicals & Fibre Corporation
- Sumitomo Chemical Co., Ltd.
- Hongbaoli Group Corporation Ltd. Class A
- Covestro AG
- Hannong Chemicals Inc.
- Trinseo SA
- Lion Chemtech Co., Ltd.
- Zhejiang Jiahua Energy Chemical Industry Co. Ltd. Class A
- Samyang Corporation
- Sewoo Global Co., Ltd
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Last Updated on 20 Oct, 2020
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