DL posts 256 percent jump in operating profit on petrochemical strength

DL said its operating profit surged 256.1 percent from a year earlier to 257 billion won ($179 million), as the company navigated a sluggish global market by shifting its focus to high-value products.

Revenue for the period rose 26.2 percent to 1.67 trillion won ($1.17 billion). The petrochemicals and materials division, which accounts for the bulk of the conglomerate's sales, led the growth despite headwinds from China's expanded production capacity. This segment generated 1.1 trillion won ($767 million) in revenue during the quarter, representing 82.2 percent of the group's total consolidated sales.

Net income reached 153 billion won ($107 million). Pre-tax income from continuing operations swung to a 186 billion won gain compared with a 45.8 billion won loss a year ago.

"We are pursuing a portfolio transition centered on high-value-added products, customer diversification and new application development alongside factory operational efficiency and cost reductions," the company said regarding its response to weak global demand and large-scale capacity expansions in China.

For the first half of the year, DL's cumulative operating profit climbed 108.2 percent to 369 billion won ($258 million).

Beyond chemicals, the group's automotive parts subsidiary continues to supply components for internal combustion and electric vehicles, including batteries and drive motors, while its energy arm remains active in power generation consulting and renewable energy projects.