S Korea’s Honam prelim Q2 operating profit dips to $178m

19 July 2010 11:09  [Source: ICIS news]

SINGAPORE (ICIS news)--Honam Petrochemical posted a preliminary second-quarter  operating profit of Korean won (W) 216.4bn ($178m), down 3.8% from the same period last year due to poor margins, a company source said on Monday.

Revenue for the quarter jumped 26% year on year to W1,842bn, said Honam corporate planning manager Kim Minwoo in an e-mailed statement to ICIS.

“The … new capacities outside of the country [that came on stream] in the later part of the quarter have squeezed the spread and profitability of most products,” Kim said.

Honam is expected to release its official financial results in mid-August.

The company produces synthetic resins, basic petrochemicals, basic chemicals and performance polymers, and has an ethylene capacity of 1.75m tonnes/year.

Honam, a unit of South Korean conglomerate Lotte Group, announced on 16 July its acquisition of a 72.2% stake in Malaysian polyethylene producer Titan Chemicals for M$2.94bn ($910m) or at M$2.35/share, marking its first venture into the southeast Asian country.

The company expects to get full ownership of Titan by November, with a total investment of about $1.3bn.

($1 = W1,217 / $1 = M$3.23)

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By: Nurluqman Suratman

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