LG Chem is seeking solutions to revive its struggling petrochemical business. Splitting the petrochemical business and attracting foreign investments from the Middle East to create a joint venture are among the scenarios being discussed.Vice Chairman Shin Hak-cheol of LG Chem responded to reporters’
SK innovation reported on Feb. 6 that its revenue for the last year amounted to 77.2885 trillion won (US$58.2400 billion) with an operating profit of 1.9039 trillion won. Compared to the previous year, revenue and operating profit decreased by 0.98% and 51%, respectively.In the fourth quarter of las
SK Innovation has successfully achieved a turnaround to profitability within just one quarter, driven by the growth in its overall business profits. The battery division has improved its chances of turning a profit in the fourth quarter, recording its historically lowest operating losses. Meanwhile,
The Korea Chamber of Commerce and Industry (KCCI) suggested in a report that Korea cooperate with major Middle Eastern countries such as Saudi Arabia, the United Arab Emirates (UAE), and Qatar in the fields of future energy, electric vehicles and defense.The KCCI released the report on economic coop
South Korea has signed a Free Trade Agreement (FTA) with the United Arab Emirates (UAE), marking its first such agreement with a Middle Eastern country and its 24th FTA overall.The Ministry of Trade, Industry and Energy announced that Ahn Deok-geun and Thani bin Ahmed Al Zeyoudi concluded Comprehens
Hyundai Engineering announced on Sept. 21 that it had secured a contract on Sept. 20 for the basic Front End Engineering Design (FEED) services of the Pine Bluff GTL Americas project ordered by GTL Americas.This project entails constructing a facility in Jefferson County, Arkansas, the U.S. that con
While international oil prices continue their soaring ascent, approaching the US$100 mark, the fortunes of the refining and petrochemical industries are diverging.According to industry sources on Sept. 12, the average price of Dubai crude oil, which serves as the basis for the domestic crude oil imp
In the first half of this year, South Korea’s top four petrochemical companies – LG Chem, Lotte Chemical, Kumho Petrochemical, and Hanwha Solutions – have collectively lowered the average operational rates at their domestic petrochemical plants. This adjustment comes as the petrochemical industry ha
Petroleum product exports by Korea’s four major oil refiners increased for the second consecutive year in the first half of 2023.The Korea Petroleum Association reported that petroleum product exports from the country’s four largest refiners (SK Energy, GS Caltex, S-OIL, and HD Hyundai Oilbank) tota
The author is an analyst for NH Investment & SEcurities. HE can be reached at yk.choi@nhqv.com -- Ed.Key indicators in the refining industry are strong. Refining margins and aromatics product spreads are above the historical averages. In 2H23, solid refining margins should continue amid limited room
Hyundai Construction has succeeded in securing a plant construction project in Saudi Arabia worth 6.5 trillion won (US$5.0 billion). It is the seventh overseas contract in its history and the largest project ever secured in Saudi Arabia. This accomplishment is seen as a concrete result of the agreem
The author is an analyst of NH Investment & Securities. He can be reached at yk.choi@nhqv.com -- Ed.The impacts of China’s economic reopening are unfolding slower than expected. But, with the direction of a gradual strengthening in demand remaining intact, we foresee a modest earnings recovery for L
The Korea Petroleum Association announced on Jan. 29 that South Korean oil refining companies’ petroleum product exports hit an all-time high of US$57.037 billion last year, up 71.2 percent from a year ago.In 2022, South Korea’s crude oil imports totaled US$95.45 billion and the ratio of the exports
The Korea International Trade Association announced on Dec. 13 that South Korea's exports to Russia totaled US$5.037 billion for the first 10 months of this year, down 37.5 percent from a year ago.This decrease is because Russia has been under U.S. and EU sanctions since the outbreak of the war
South Korean oil refining companies are expanding their business in the petrochemical industry. This is because oil refining is highly vulnerable to international oil price and refining margin fluctuations and environmental regulations are increasing worldwide.S-Oil decided to invest US$7 billion in
Petroleum product exports by Korea’s four major oil refineries -- SK Energy, GS Caltex, S-Oil, and Hyundai Oilbank –- hit an all-time high of US$16.3 billion (about 22 trillion won) in the third quarter. They recouped 60 percent of their money spent on purchasing crude oil by exporting petroleum pro
The author is an analyst of KB Securities. He can be reached at wchun@kbfg.com. -- Ed. Initiating coverage with BUY, target price of KRW91,000 We initiate coverage on DL Holdings with a BUY rating and TP of KRW91,000 (55.3% upside). Our valuation of Refineries & Chemicals stocks is based on the ROE-
The author is an analyst of KB Securities. He can be reached at wchun@kbfg.com. -- Ed. Initiate coverage with BUY and TP of KRW110,000 We initiate coverage of S-Oil with a BUY rating and target price of KRW110,000 (29.0% potential upside). We have used the P/B-ROE model in deriving TPs for Korea Ref
The author is an analyst of KB Securities. He can be reached at wchun@kbfg.com. -- Ed. Initiate coverage with BUY and TP of KRW200,000 We initiate coverage of Lotte Chemical with a BUY rating and target price of KRW200,000 (24.6% potential upside). We have used the P/B-ROE model in deriving TPs for
The author is an analyst of KB Securities. He can be reached at wchun@kbfg.com. -- Ed. Initiate coverage with BUY and TP of KRW223,000 We initiate coverage of SK innovation with a BUY rating and target price of KRW223,000 (42.0% potential upside). We have used the P/B-ROE model in deriving TPs for K