Asia300

Lotte Chemical Corp.

South Korea

  • 1m
  • 3m
  • 6m
  • 1y
  • 2y
  • 5y
Nov 16, 2017
Prev close: 356,000
Nov 16, 2017
Market cap:
Market cap(USD):
12,202.05B
11,079.17M
Shares: 34.27M

Currency in KRW

Company profile

Market(Ticker): KRX(011170)
Sector:
Industry:
Process Industries
Chemicals: Specialty
Full time employees: 2,857

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.

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.

In the news

Financial highlights

Dec 2016

  • Local currency
  • US Dollar
Revenue 13,223.54B
Gross profit 3,249.80B
Operating income 2,545.61B
Income before tax 2,415.92B
Net income 1,835.81B
EBITDA 3,174.76B
Diluted EPS 54,488
Dividends per share 4,000
Total assets 15,866.83B
Total liabilities 6,466.01B
Total equity 9,363.11B
Operating cash flow 2,680.54B

Currency in KRW

Revenue 11,397.74M
Gross profit 2,801.09M
Operating income 2,194.13M
Income before tax 2,082.35M
Net income 1,582.33M
EBITDA 2,736.41M
Diluted EPS 46.96
Dividends per share 3.44
Total assets 13,136.97M
Total liabilities 5,353.54M
Total equity 7,752.20M
Operating cash flow 2,310.43M

Currency in USD

Valuation measures

Dec 2016

PER 6.77
ROA 13.43%
ROE 21.74%
Operating margin 19.25%
Profit margin 13.88%

Key executive

  • Chairman & Co-Chief Executive Officer: Dong-Bin Shin
  • President, Co-Chief Executive Officer & Director: Soo-Young Huh
  • Executive Board Member & Head-Global Operations: Nak-Sun Seong
  • Head-Financial Accounting: Sung-Taek Jo
  • Executive Board Member & Head-Research Center: Dong-Woo Lee

Share holders

  • LOTTE Holdings Co., Ltd.(40.5%)
  • Hotel Lotte Co., Ltd.(12.6%)
  • National Pension Service of Korea(9.7%)
  • The Vanguard Group, Inc.(1.0%)
  • BlackRock Fund Advisors(0.9%)
  • APG Asset Management NV(0.8%)
  • Norges Bank Investment Management(0.7%)
  • Dimensional Fund Advisors LP(0.6%)
  • Robeco Institutional Asset Management BV(0.5%)
  • Schroder Investment Management Ltd.(0.4%)

Address

  • Website: http://www.lottechem.com
  • Address: 7-11/F, Lotte Tower Building, 51 Boramae-ro 5-gil, Seoul, 07071, South Korea
  • Phone: +82.2.829.4114

Copyright © 2017 FactSet Research Systems Inc. All rights reserved.