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MarketScreener Homepage  >  Equities  >  Korea Stock Exchange  >  Kumho Petrochemical Co., Ltd.    A011780   KR7011780004

KUMHO PETROCHEMICAL CO., LTD.

(A011780)
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Kumho Petrochemical : 2020 2Q Earnings Release

08/07/2020 | 02:54am EST

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.

  1. 2Q 2020 Business Results
  2. Divisional Results
  3. 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

2

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

4

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

10

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


© Publicnow 2020
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Sales 2020 4 680 B 4,24 B 4,24 B
Net income 2020 532 B 0,48 B 0,48 B
Net Debt 2020 524 B 0,47 B 0,47 B
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Nbr of Employees 1 294
Free-Float 51,6%
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Technical analysis trends KUMHO PETROCHEMICAL CO., LTD.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
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Mean consensus OUTPERFORM
Number of Analysts 21
Average target price 174 190,48 KRW
Last Close Price 220 500,00 KRW
Spread / Highest target 4,31%
Spread / Average Target -21,0%
Spread / Lowest Target -61,5%
EPS Revisions
Managers and Directors
NameTitle
Chan-Koo Park Chairman & Co-Chief Executive Officer
Dong-Jun Moon President, Co-Chief Executive Officer & Director
Young-Do Ko Managing Director & Head-Finance
You-Sun Song Managing Director & Head-Technology Business
Ok-Ryul Song Independent Director
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