DL’s year-to-date operating profit through Q3 reaches 543.3 billion won, its highest since launching as a holding company

[Financial News] DL recorded year-to-date operating profit of 543.3 billion won through the third quarter, its highest since the launch of its holding company. Improved profitability at Kraton and record quarterly operating profits at DL Energy and GLAD supported its consolidated results.
DL said in a preliminary earnings announcement on the 3rd that it posted consolidated revenue of 1.47 trillion won and operating profit of 174 billion won in the third quarter. The figures were up 5.9% and 59.1%, respectively, from a year earlier.
The third-quarter operating margin was 11.8%, staying in double digits for the second consecutive quarter. Cumulative revenue totaled 4.4206 trillion won, and operating profit came to 543.3 billion won.
Kraton posted third-quarter operating profit of 73.1 billion won, up 70.1 billion won from a year earlier. Cumulative operating profit was 209 billion won. The improvement in profitability was attributed to restructuring and management efficiency measures pursued since last year, as well as a shift in the portfolio toward high-value specialty products.
DL Chemical’s profitability weakened from the previous quarter as the effects of temporary product price increases faded and reverse-lagging effects related to the time lag in raw-material input emerged, among other factors. However, polybutene (PB), a specialty product, maintained solid profitability.
DL Energy posted a record quarterly operating profit of 62.1 billion won, benefiting from U.S. power supply and demand conditions and seasonal peak-season effects. Increased power sales from its U.S. natural gas-fired power plants and wider generation spreads drove the results.
GLAD also posted a record quarterly operating profit as the number of foreign tourists increased. Both the average room rate and occupancy rate were at their highest levels, and its operating margin reached 38.6%.
Its financial structure also improved. Net debt at the end of the third quarter stood at 3.8236 trillion won, down 459 billion won from the end of last year. The debt ratio fell 12.2 percentage points, from 147.5% to 135.3%.
A DL representative said, “We will continue to strengthen our stable earnings and cash-generating capacity by further refining our business structure with a focus on profitability.”
Meanwhile, DL Group is building an energy value chain spanning development, construction, operations and distribution by linking DL Energy’s capabilities in project development, financing and operations with DL E&C Co., Ltd.’s EPC capabilities for power plants and nuclear facilities, and Daelim Co., Ltd.’s energy logistics and trading functions.


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