Kumho Petro Chemical (011780) Q4 2024 earnings summary

Executive summary

• 4Q 2024 sales reached KRW 1,807.1 bn, up 19.2% year-over-year but down 1.1% sequentially from 3Q 2024.

• Operating profit dropped sharply to KRW 10.0 bn, an 84.6% decrease year-over-year and 84.6% sequentially.

• Net income was KRW 61.4 bn, down 32.8% year-over-year but up 15.6% sequentially.

Financial highlights

• EBITDA for 4Q 2024 was KRW 81.0 bn, down 38.1% year-over-year and 16.7% sequentially.

• Pre-tax income was KRW 70.1 bn, down 6.4% year-over-year but up 13.8% sequentially.

• Equity income rose 127.8% sequentially to KRW 34.4 bn.

Outlook and guidance

• Synthetic Rubbers: Profitability expected to improve in 1Q 2025 due to strong BD prices and sales price policy reflecting raw material costs.

• Synthetic Resins: Gradual market recovery anticipated, but price increases likely limited.

• Phenol Derivatives: Sales volume and product spread expected to improve in 1Q 2025.

• EPDM/TPV: Profitability expected to improve as market prices trend upward.

• Energy: Profitability expected to recover with increased sales.