Aug 7, 2020
2Q 2020 Earnings Release
The business result for the 2nd quarter of 2020 is currently under the audit process, however this is
presented purely for the purposes of investors' convenience.
Hence, please be advised that some of the contents may be altered in the course of audit.
Forecasts and projections contained in this material are based on current business environments and management strategies, so these may differ from the actual result upon changes and unaccounted variables.
- 2Q 2020 Business Results
- Divisional Results
- Appendix
2Q 2020 Business Results
Income Statements
(Unit: KRW bn) | ||||||
Classification | 20.2Q | 20.1Q | QoQ | 19.2Q | YoY | |
Sales | 1,026.2 | 1,225.5 | -16.3% | 1,292.8 | -20.6% | |
Operating Profit | 120.1 | 133.1 | -9.8% | 138.1 | -13.0% | |
(11.7%) | (10.9%) | (10.7%) | ||||
EBITDA | 169.0 | 182.1 | -7.2% | 186.5 | -9.4% | |
(16.5%) | (14.9%) | |||||
(14.4%) | ||||||
Pre-tax Income | 126.6 | 139.0 | -8.9% | 149.7 | -15.4% | |
(12.3%) | (11.3%) | (11.6%) | ||||
Net Income | 99.8 | 127.5 | -21.7% | 115.2 | -13.4% | |
(9.7%) | (10.4%) | (8.9%) | ||||
Equity Income | 10.1 | 9.5 | 6.7% | 10.4 | -2.9% | |
* Net Income is based on Controlling interests.
- Since the business related with Electronic Chemicals has been disposed in 20.1Q, it is classified as discontinued operations, and the financials of same term of last year have been rewritten.
1
2Q 2020 Business Results
Balance Sheet
(Unit: KRW bn)
Classification | 20.2Q | 19 | Change |
(End) | |||
Asset | 4,667.2 | 4,538.0 | 2.8% |
(Cash and | (491.3) | (127.8) | (284.4%) |
equivalents) | |||
Liabilities | 1,897.7 | 1,908.4 | -0.6% |
(Debt) | (1,186.2) | (1,104.0) | (7.4%) |
Shareholder's | 2,769.5 | 2,629.6 | 5.3% |
Equity | |||
Liabilities/ | 68.5% | 72.6% | -4.1%p |
Equity (%) | |||
Financial Ratios
Classification | 20.2Q | 19 | Change |
(End) | |||
Debt/Equity | 42.8 % | 42.0% | 0.8%p |
Net Debt | 25.1% | 37.1% | -12.0%p |
/Equity | |||
Interest | |||
Coverage | 16.3 | 8.4 | 7.9 |
Ratio (x) | |||
ROE | 16.8% | 11.8% | 5.0%p |
ROA | 9.9% | 6.4% | 3.4%p |
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Divisional Results & Outlook
Synthetic
Rubbers
36.1%
of total sales
2Q Earnings Review
- Reduction in sales volume and revenue caused by reduced utilization rate of tire companies and weak demand due to COVID19.
- Secure profitability of NB Latex by increasing demand for hygiene products.
3Q Outlook
-
BD: The price is forecasted to be rebound due to
high usage of light feed cracking and reduced supply in the region. - Demand recovery is expected due to restart of tire companies.
Sales (Unit: KRW bn)
499.9
485.8
469.3
455.2
369.9
19.2Q | 19.3Q | 19.4Q | 20.1Q | 20.2Q |
3
Divisional Results & Outlook
Synthetic
Resins
24.4%
of total sales
2Q Earnings Review
- Maintain profitability due to strong demand for food packaging/disposable PS and ABS for home appliances.
3Q Outlook
- SM: Despite strong demand, the price is forecasted to be strong due to reduced operations in the region.
- Expected to see an increase in selling prices and profitability caused by the improved demand in automotive/home appliance market.
Sales (Unit: KRW bn)
311.6
292.1
285.7
276.2
250.5
19.2Q | 19.3Q | 19.4Q | 20.1Q | 20.2Q |
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Divisional Results & Outlook
Others
39.5%
of total sales
2Q Earnings Review
- Phenol derivatives: Improvement in profitability due to strong spreads of main products.
- Energy: Decline in sales and profitability caused by a drop in the electricity price (SMP) and annual shutdown.
3Q Outlook
- Phenol derivatives: The product price is forecasted to be weak by increasing phenol supply and easing acetone supply in the region.
- Energy: Sales and profitability will be improved after maintenance.
Sales (Unit: KRW bn)
481.3
454.3 | 470.5 | |||
55.4 | 442.1 | |||
45.2 | ||||
36.5 | 61.5 | 59.4 | 405.8 | |
48.4 | Others | |||
46.2 | ||||
31.5 | 46.9 | |||
41.3 | 30.2 | |||
Energy | ||||
28.8 | 33.6 | |||
32.5 | 17.0 | Specialty Chemicals | ||
Phenol | ||||
Derivatives | ||||
357.9 | 346.7 | |||
319.2 | ||||
306.8 | 309.0 | |||
19.2Q | 19.3Q | 19.4Q | 20.1Q | 20.2Q |
5
APPENDIX
Quarterly Performance
(Unit: KRW bn)
2019 | 2020 | |||||||||
Classification | ||||||||||
1Q | 2Q | 3Q | 4Q | Total | 1Q | 2Q | 3Q | 4Q | Total | |
Sales | 1,270.7 | 1,292.8 | 1,220.0 | 1,185.7 | 4,969.2 | 1,225.5 | 1,026.2 | 2,251.7 | ||
Operating | 143.5 | 138.1 | 68.7 | 15.9 | 366.2 | 133.1 | 120.1 | 253.2 | ||
Profit | ||||||||||
Net | ||||||||||
Interest | 14.7 | 15.2 | 15.3 | 3.8 | 49.0 | 13.0 | 6.4 | 19.4 | ||
Expense | ||||||||||
Equity | 10.2 | 10.4 | 11.3 | 7.1 | 39.0 | 9.5 | 10.1 | 19.6 | ||
Income | ||||||||||
Pre-tax | 142.8 | 149.7 | 68.8 | 16.6 | 377.8 | 139.0 | 126.6 | 265.6 | ||
Income | ||||||||||
Net | 113.9 | 115.2 | 47.6 | 17.9 | 294.6 | 127.5 | 99.8 | 227.3 | ||
Income | ||||||||||
- Net Income is based on Controlling interests.
- Since the business related with Electronic Chemicals has been disposed in 20.1Q, it is classified as discontinued operations, and the financials of same term of last year have been rewritten.
6
APPENDIX
Production Capacity (KKPC)
Classification | Product | Capa | Unit | Note | |||
SBR | 256,000 | ||||||
B | HBR | 290,000 | |||||
R | LBR | 48,000 | |||||
S-SBR | 63,000 | ||||||
NdBR | 60,000 | ||||||
Synthetic | NBR | 87,000 | MT/Y | ||||
Rubbers | HSR | 10,000 | |||||
NB Latex | 580,000 | Completion of Expansion | |||||
60,000MT/Y, 2H, '20 | |||||||
SB Latex | 82,800 | ||||||
SBS | 93,000 | Completion of Expansion | |||||
45,000MT/Y, 2H, '20 | |||||||
Total | 1,569,800 | ||||||
PS | 239,000 | ||||||
ABS | 250,000 | ||||||
Synthetic | |||||||
SAN/Pwd | 181,000 | MT/Y | |||||
Resins | EPS | 80,000 | |||||
PPG | 144,000 | ||||||
Total | 894,000 | ||||||
Specialty | Antioxidants | 83,900 | MT/Y | Completion of Expansion | |||
Chemicals | 4,900MT/Y, 1H, '20 | ||||||
Energy | Steam | 1,710 | T/H | ||||
Electricity | 300 | MWH | |||||
Ulsan | 90,000 | ||||||
BD | Yeosu | 147,000 | MT/Y | ||||
Total | 237,000 | 7 | |||||
APPENDIX
Production Capacity (Affiliates)
Classification | Product | Capa | Unit | Note |
Phenol | 680,000 | |||
Acetone | 420,000 | Completion of AR(Acetone recycle) Expansion | ||
56,000MT/Y, 1Q, '21 | ||||
Kumho | MIBK | 60,000 | ||
Cumene | 900,000 | |||
P&B | MT/Y | |||
BPA | 450,000 | |||
Chemicals | ||||
Completion of Expansion 45,000MT/Y, 2Q, '19 | ||||
Epoxy Resin | 207,000 | Completion of LER(III) Revamping | ||
20,000MT/Y, 3Q, '21 | ||||
Total | 2,717,000 | |||
Kumho | MDI | 410,000 | Completion of Expansion | |
60,000MT/Y, 2H, '19 | ||||
Mitsui | MT/Y | |||
Aniline | 20,000 | |||
Chemicals | ||||
Total | 430,000 | |||
Kumho | EP(D)M | 220,000 | ||
TPV/KEPA | 12,000 | MT/Y | ||
Polychem | ||||
Total | 232,000 | |||
8
APPENDIX
Sales Breakdown & Export Share by Region
Synthetic Rubbers | |
Domestic | Export |
13% | 87% |
S.E.Asia | 55% |
China | 23% |
America | 7% |
Europe | 7% |
S.W.Asia | 6% |
Others | 2% |
Synthetic Resins | ||||||
Domestic | Export | |||||
35% | 65% | |||||
China | 41% |
Africa | 16% |
S.W.Asia | 12% |
S.E.Asia | 12% |
Europe | 12% |
America | 7% |
9
APPENDIX
Investment Shares & Asset available for sale
Asset available for sale
Asiana Airlines | 11.0% |
Daewoo E&C | 3.4% |
KDB Life Insurance | 0.4% |
Major
Shareholder
24.8%
KKPC
Treasury
Stock
18.4%
Investments in Affiliates
Kumho P&B Chemicals | 100.0% |
Kumho Mitsui Chemicals | 50.0% |
Kumho Polychem | 50.0% |
Kumho Terminal & Logistics | 100.0% |
Korea Energy Power Plants | 96.1% |
- As of 30th June, 2020. based on common shares
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Disclaimer
Kumho Petro Chemical Co. Ltd. published this content on 07 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 06:53:18 UTC