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DL Chemical plant at Yeosu Industrial Complex (Photo courtesy of DL Chemical) |
[Alpha Biz= Paul Lee] DL Chemical posted second-quarter standalone sales of ₩367.2 billion, down 28.7% from the same period last year, according to the company’s July earnings release. Operating profit plunged 67.1% year-on-year to ₩24.4 billion. While the company’s proprietary polybutene (PB) business continues to deliver strong profitability, earnings from polyethylene (PE) have fallen due to intensified competition and sluggish market conditions.
DL Chemical has been in the red since 2022, recording net losses of ₩102.4 billion in 2022, ₩329.4 billion in 2023, and ₩304.7 billion so far in 2024. As of March this year, accumulated deficits totaled ₩724.4 billion, and the company is also under pressure to provide financial support to its affiliate, Yeochun NCC.
Hanwha Solutions faces a similar challenge. The company reported consolidated operating profit of ₩102.1 billion in the second quarter, turning a profit from a loss a year earlier, with sales up 17.55% to ₩3.1173 trillion. However, excluding ₩182.0 billion in U.S. Inflation Reduction Act (IRA) subsidies included in operating profit, the quarter would have ended in a loss.
By segment, Hanwha Solutions’ chemical division has now posted operating losses for seven consecutive quarters since Q4 2023. Global oversupply has pushed selling prices down, and the company expects the division to remain in the red in the third quarter, extending losses over a two-year period.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
