(LEAD) LG Chem swings to Q3 loss on non-operating losses

LG Chem, South Korea's leading chemical company, reported a net loss for the third quarter of 2025, marking a shift from a net profit in the same period the previous year. The company's loss for Q3 was 600 billion won (US$446.9 million), compared to a net profit of 447.3 billion won in Q3 2025. This decline was largely attributed to non-operating losses, including interest expenses on dollar-denominated borrowings and foreign exchange translation losses due to the won appreciating against the dollar.

Non-operating losses totaled 1.2 trillion won in the quarter. Operating profit fell 17.4 percent to 561.2 billion won, down from 679.7 billion won a year earlier. Despite a 34 percent rise in sales to 15.49 trillion won, LG Chem's core petrochemical division experienced an operating loss of 175.6 billion won, driven by narrower product profit margins, higher logistics costs, and the won's appreciation.

The advanced materials and life sciences divisions remained profitable, while LG Energy Solution, its battery-making affiliate, reported a net loss of approximately 300 billion won in the same quarter. Looking ahead, LG Chem anticipates potential earnings pressure in the fourth quarter due to higher oil prices resulting from Middle East tensions and a planned maintenance shutdown at its No. 1 naphtha cracking center in Yeosu.

The company plans to bolster profitability and competitiveness by expanding value-added businesses, reorganizing its portfolio, and pursuing disciplined investment and financial management to enhance shareholder value.