SEOUL, Nov. 5 (Yonhap) -- LG Chem Ltd., South Korea's leading chemical company, said Thursday it swung to a net loss in the third quarter from a year earlier, largely due to hefty non-operating losses.
In the three months that ended in September, the company shifted to a loss of 600 billion won (US$446.9 million) from a net profit of 447.3 billion won in the same period in 2025, the company said in a regulatory filing.
"Interest expenses on dollar-denominated borrowings and foreign exchange translation losses stemming from the won's appreciation against the dollar totaled 1.2 trillion won in the third quarter, weighing on the bottom line," a company spokesperson said.
Operating profit fell 17.4 percent to 561.2 billion won in the third quarter from 679.7 billion won a year earlier. Sales rose 34 percent to 15.49 trillion won from 11.56 trillion won.
LG Chem's core petrochemical division posted an operating loss of 175.6 billion won, weighed down by narrower spreads for key products due to the reverse lagging effect, higher logistics costs and the won's appreciation.
The advanced materials and life sciences divisions remained profitable, while battery-making affiliate LG Energy Solution Ltd. reported a net loss of around 300 billion won in the same quarter.
For the fourth quarter, LG Chem forecast potential earnings pressure from higher oil prices amid prolonged geopolitical tensions in the Middle East, as well as a scheduled maintenance shutdown at its No. 1 naphtha cracking center (NCC) in Yeosu, about 320 kilometers south of Seoul.
"We will strengthen profitability and business competitiveness by expanding value-added businesses and reorganizing our business portfolio while seeking ways to enhance shareholder value through disciplined investment and sound financial management," the company said.
From January to September, the company swung to a net loss of 1.31 trillion won from a net profit of 595.8 billion won in the same period last year.
Operating profit fell 30 percent on-year to 1.11 trillion won in the first nine months, while sales rose 16 percent to 41.9 trillion won.
A photo, provided by LG Chem Ltd., of its corporate logo (PHOTO NOT FOR SALE) (Yonhap)
A photo, provided by LG Chem Ltd., of its corporate logo (PHOTO NOT FOR SALE) (Yonhap)