Lotte Chemical롯데케미칼

Lotte Chemical remains loss-making and heavily indebted as weak petrochemical demand and oversupply weigh on the business and shares.

Trailing results to H1 2026 show revenue of ₩20.2T but an operating loss of ₩382B and a net loss of ₩1.17T, with borrowings of ₩10.3T far above cash of ₩1.4T. The share price is down about 39% over one year and sits near its 52-week low, and recent news reports point to lower earnings expectations tied to oil prices and Chinese oversupply.

What stands out

• Revenue fell 9.5% in 2025 to ₩18.5T, and the operating loss widened to ₩943B from ₩894B in 2024.
• Trailing free cash flow is negative at about -₩1.66T, and liabilities are 76.8% of equity.
• Price-to-book is about 0.1, and the dividend yield is 2.1%, but the data does not include a fair value estimate.
• Foreign ownership eased from 21.7% to 19.9% over 60 days, while institutions and foreign investors were net sellers over the last 20 days and retail investors were net buyers.
• Recent headlines say Q3 earnings may be hit by reverse lagging effects and that Hana Securities lowered its target price, but the data gives no details of the new target.

What to watch

• Q3 2026 results, which news reports suggest may fall short of consensus, and progress on the business restructuring.
• Filings on debt guarantees for third parties and a serious accident at a consolidated subsidiary disclosed on 15 October 2026.
• Whether cash flow and borrowings improve, since trailing free cash flow is negative and the data gives no refinancing details.