LG Chem financial and operational developments

Overview

LG Chem has initiated a plan to liquidate approximately 2.5 trillion won in LG Energy Solution shares using a Pre-arranged Return Swap method. This move is intended to reduce its stake from 79.38% to roughly 76.59%, with proceeds aimed at improving financial structures, repaying borrowings, and funding growth investments. As part of this process, the company announced a shareholder return program involving the purchase and cancellation of treasury shares.

In its third-quarter financial reporting, LG Chem saw a 34% increase in consolidated revenue to 15.496 trillion won, though operating profit declined by 17.4% to 561.2 billion won. The decline was attributed to an operating loss in the petrochemical division caused by narrowed product spreads and increased costs. Conversely, the advanced materials division reported an operating profit of 39.7 billion won, driven by battery material volumes and demand in the semiconductor and automotive sectors.

Entities

LG Chem · LG Energy Solution · Cha Dong-seok · FarmHannong

Timeline

1 day ago

[BUSINESS] 3 sources
LG Chem reports 17.4% drop in Q3 operating profit
LG Chem's Q3 operating profit fell 17.4% to 561.2 billion won despite a 34% revenue surge, as petrochemical losses offset growth in advanced materials.
8 days ago

[BUSINESS] 5 sources
LG Chem to liquidate 2.5 trillion won in LG Energy Solution shares
LG Chem is liquidating 2.5 trillion won of its LG Energy Solution stake via a PRS contract to improve finances and fund shareholder returns, including 400 billion won for buybacks and dividends.

Sources

biz.heraldcorp.com · datafocus.co.kr · newstomato.com · sateconomy.co.kr · sisajournal.com · zdnet.co.kr