S Korea’s LG Chem swings to Q4 net loss after truckers’ strike

SINGAPORE (ICIS)–LG Chem swung to a net loss of Korean won (W) 6bn in the fourth quarter of 2022 from a net profit of W337bn in the same period a year earlier, partly weighed by the nationwide truckers’ strike which started in late November.

–  Petrochemicals unit posted operating loss of W166bn in Q4 2022, compared with an operating profit of W686bn in the same period of 2021, weighed by reduced output from turnarounds, the truckers’ strike and “reduced demand from the spread of COVID-19 in China”, the company said in a statement on 31 January.
– Full-year 2022 results worsened from the previous year due to poorer demand from the global economic slowdown and increased supply in northeast Asia.
– Profitability of products such as ABS and PVC declined last year due to difficulties in hiking prices amid rising oil and feedstock prices.

OUTLOOK
 – Petrochemicals market is expected to gradually rebound in 2023 from China’s reopening.
– The company expects petrochemicals sales of W20.2trillion in 2023, down from the W21.7tr in 2022.