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Process Industries

Lotte Chemical Corp.

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

Lotte Chemical Corp. is engaged in the manufacture of petrochemicals. It operates through the following businesses: Resin products, Basic petrochemicals and Chemicals. The Resin products business provides polyethylene, polypropylene, polycarbonate and functional resin and polyethylene terephthalate. The Basic petrochemicals business includes ethylene oxide, mono ethylene, di ethylene and tri ethylene glycol, methyl methacrylate, ethanolamine, butadiene and samarium. The Chemicals business offers benzene, toluene and mixed xylene. The company was founded on March 16, 1976 and is headquartered in Seoul, South Korea.

Financial Highlights

Dec 2021 KRWUSD
Revenue18,120.46B15,823.52M
Gross Profit2,427.71B2,119.97M
Operating income1,535.64B1,340.98M
Income before tax1,521.55B1,328.68M
Net income1,345.65B1,175.08M
EBITDA2,368.37B2,068.16M
Diluted EPS39,260.0434.28
Dividends Per Share8,3007.24
Total Assets22,869.96B19,238.66M
Total liabilities7,418.76B6,240.81M
Total equity14,410.21B12,122.15M
Operating cash flow1,535.20B1,340.60M
Currency in KRWCurrency in USD

Historical Data

 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 15,874.51B 16,073.06B 15,123.47B 12,223.03B 18,120.46B
Gross Profit 3,775.37B 2,687.41B 1,878.34B 1,113.80B 2,427.71B
Operating income 2,930.11B 1,946.17B 1,105.49B 357,071.86M 1,535.64B
Income before tax 3,084.68B 2,006.18B 1,063.65B 178,695.37M 1,521.55B
Net income 2,243.87B 1,537.08B 816,896.52M 158,468.91M 1,345.65B
EBITDA 3,621.27B 2,631.21B 1,837.06B 1,187.96B 2,368.37B
Diluted EPS 65,625 46,073.67 20,859.79 4,623.39 39,260.04
Dividends Per Share 10,500 10,500 6,700 3,600 8,300
Total Assets 19,550.97B 20,799.13B 20,043.10B 19,386.54B 22,869.96B
Total liabilities 7,296.20B 7,254.81B 5,989.97B 5,674.19B 7,418.76B
Total equity 11,489.62B 12,734.71B 13,204.39B 12,846.51B 14,410.21B
Operating cash flow 3,152.43B 1,503.36B 1,408.91B 1,377.44B 1,535.20B
 Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Revenue 14,041.89M 14,604.99M 12,968.34M 10,359.48M 15,823.52M
Gross Profit 3,339.53M 2,441.95M 1,610.67M 943.99M 2,119.97M
Operating income 2,591.84M 1,768.41M 947.96M 302.63M 1,340.98M
Income before tax 2,728.57M 1,822.94M 912.07M 151.45M 1,328.68M
Net income 1,984.83M 1,396.69M 700.48M 134.30M 1,175.08M
EBITDA 3,203.22M 2,390.88M 1,575.27M 1,006.84M 2,068.16M
Diluted EPS 58.04 41.86 17.88 3.91 34.28
Dividends Per Share 9.28 9.54 5.74 3.05 7.24
Total Assets 18,262.54M 18,640.56M 17,331.57M 17,846.40M 19,238.66M
Total liabilities 6,815.37M 6,501.89M 5,179.62M 5,223.41M 6,240.81M
Total equity 10,732.45M 11,413.08M 11,418.04M 11,825.93M 12,122.15M
Operating cash flow 2,788.50M 1,366.05M 1,208.13M 1,167.43M 1,340.60M

Valuation Measures

Dec 2021
PER5.52
ROA6.36%
ROE9.87%
Operating margin8.47%
Profit margin7.42%

Key executives

  • Chairman & Co-Chief Executive Officer: Dong-Bin Shin
  • Co-Chief Executive Officer & Director: Young-jun Lee
  • Co-Chief Executive Officer & Director: Jin-Koo Hwang
  • Co-Chief Executive Officer & Director: Kyo-Hyeon Kim
  • Senior Managing Director & Head-Research: Gyeong-Bo Kang

Shareholders

  • Lotte Holdings Co., Ltd. (29.2%)
  • Lotte Corp. (25.5%)
  • National Pension Service of Korea (7.7%)
  • The Vanguard Group, Inc. (1.1%)
  • BlackRock Fund Advisors (1.0%)
  • Dimensional Fund Advisors LP (0.6%)
  • Invesco Asset Management Ltd. (0.4%)
  • Samsung Asset Management Co., Ltd. (0.3%)
  • Eastspring Investments (Singapore) Ltd. (0.3%)
  • Norges Bank Investment Management (0.3%)

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

  • Luochuan Chemical (Jiaxing) Co., Ltd.
  • Lotte Processing Materials (Shenyang) Co., Ltd.
  • Luochuan Processing Materials (Jiaxing) Co., Ltd.
  • PT Lotte Chemical Engineering Plastics Indonesia
  • Peker Surface Designs Industry & Trade JSC
  • LOTTE Chemical Vietnam Co., Ltd.
  • LOTTE Chemical Japan Co., Ltd.
  • LOTTE Chemical Hungary Ltd.
  • LOTTE Chemical Engineering Plastics (Tianjin) Co., Ltd.
  • LOTTE Chemical Engineering Plastics (Dongguan) Co., Ltd.
  • LOTTE Chemical India Pvt Ltd.
  • Lotte Chemical Corp. /Pet Plant/
  • Lotte Chemical Engineering Plastics (Jiaxing) Co., Ltd.
  • Lotte Chemical Poland Sp zoo
  • LTC Chemical Pty Ltd.
  • LOTTE Chemical California, Inc.
  • Lotte Chemical Alabama Corp.
  • Lotte Chemical USA Corp.
  • Lotte Advanced Materials Co., Ltd.
  • Lotte Chemical (Jiaxing) Corp.
  • Lotte Chemical Trading (Shanghai) Corp.
  • Honam Chemical Trading (Shanghai) Corp.
  • LOTTE Chemical Deutschland GmbH
  • Lotte Chemical Pakistan Ltd.
  • Lotte Chemical Corp. ESOA.
  • Lotte Chemical Titan Holding Berhad

Competitors

  • LG Chem Ltd.
  • TotalEnergies SE
  • Korea Petro Chemical Ind. Co., Ltd.
  • LyondellBasell Industries NV
  • Hanwha Corp
  • TK Chemical Corporation
  • Formosa Chemicals & Fibre Corporation
  • Sumitomo Chemical Co., Ltd.
  • Trinseo Public Limited Company
  • Covestro AG
  • Indorama Ventures Public Co. Ltd.
  • Zhejiang Jiahua Energy Chemical Industry Co. Ltd. Class A
  • Samyang Corporation
  • Bhansali Engineering Polymers Ltd.
  • Sewoo Global Co., Ltd
  • Lion Chemtech Co., Ltd.
  • OCI Co., Ltd
Last Updated on 24 May, 2022

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