Kumho Petrochemical more than doubles first-half profit

Seoul – Kumho Petrochemical (KKPC) has reported a sharp increase in first-half earnings, supported by significantly improved profitability across its synthetic rubber and EPDM businesses.

For the six months to 30 June, the South Korean chemicals and rubber producer posted sales of KRW4,050 billion (€2.56 billion), up 10.0% year-on-year from KRW3,681 billion reported in the first half of 2025.

Operating profit more than doubled to KRW398.4 billion, up 114.4% from KRW185.8 billion last year, reported the Korean group in its second-quarter results presentation.

According to KKPC figures, the improvement accelerated in the second quarter, when group sales reached KRW2,268 billion, up 28% compared to the year before, while operating profit increased 420% to KRW339 billion.

The quarterly operating margin rose to 14.9%, from 3.7% a year earlier.

Synthetic rubber

KKPC's synthetic rubber business recorded particularly strong second-quarter growth, with sales rising 46.3% year on year to KRW987 billion, from KRW674 billion.

Segment operating profit surged to KRW190 billion, compared with KRW8.5 billion a year earlier, while the operating margin expanded to 19.2% from 1.3%.

The group attributed gains partly to stronger demand from customers seeking to secure material volumes.

This, it said, improved spreads for major products compared with the previous quarter.

It also said NB latex demand increased as glove manufacturers raised operating rates early in the quarter, with wider spreads helping that business return to profit.

KKPC said it had responded to "supply-chain risks arising from the US-Iran war" by flexibly adjusting production and sales, and minimising inventories.

For the third quarter, however, KKPC expects synthetic rubber profitability to decline as softer raw-material prices encourage customers to delay purchases.

On butadiene, the company expects short-term price strength due to Middle East-related factors, followed by a downward adjustment around the middle of the quarter amid weak downstream demand.

KKPC listed total synthetic rubber production capacity at 1.944 million tonnes/year, comprising 263ktpa SBR, 165ktpa HBR, 60ktpa NdBR, 50ktpa LBR, 158ktpa S-SBR, 94ktpa NBR, 10ktpa HSR, 946ktpa NB latex, 85ktpa SB latex and 113ktpa SBS.

The Korean group also operates 237ktpa of butadiene capacity, including 90ktpa at Ulsan and 147ktpa at Yeosu.

EPDM/TPV

Kumho Polychem's EPDM/TPV operation also delivered a substantial second-quarter improvement.

Sales increased 25.7% year-on-year to KRW227 billion, from KRW180.6 billion, while operating profit rose 216% to KRW47.4 billion, from KRW15.0 billion.

The operating margin reached 20.9%, compared with 8.3% in the second quarter of 2025.

KKPC said profit increased despite a slight reduction in sales volumes caused by scheduled maintenance.

For the third quarter, the company expects EPDM/TPV profitability to decline slightly due to seasonal weakness and softer market demand.

KKPC listed production capacity of 310ktpa for EP(D)M and 12ktpa for TPV/KEPA, for total capacity of 322ktpa.