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SEOUL, July 31 (Yonhap) -- LG Chem Ltd., South Korea's leading chemical company, said Friday it swung to a net profit in the second quarter from a year earlier, due mainly to a positive inventory lag effect.

In the three months that ended in June, LG Chem posted a net profit of 66.8 billion won (US$46.5 million), compared with a net loss of 111.9 billion won in the same period last year, the company said in a press release.

"The net result was supported by improved spreads for key petrochemical products due to a favorable inventory lag effect stemming from the U.S.-Iran war in the Middle East, along with robust sales of key products in its advanced materials and life sciences businesses," Chief Financial Officer (CFO) Cha Dong-seok said in the release.

LG Chem will continue to shift its existing businesses toward higher-value-added products while fostering future growth businesses, including semiconductor and mobility materials, to build a foundation for sustainable earnings, he said.

Operating profit rose 25.8 percent to 599.6 billion won in the second quarter from 476.8 billion won a year earlier. Sales climbed 19 percent to 14.17 trillion won from 11.9 trillion won.

The operating profit was 46.2 percent higher than the average estimate, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

For the first six months of 2026, the company swung to a net loss of 715.1 billion won from a net profit of 148.5 billion won in the year-earlier period.

Operating profit fell 39.9 percent to 549.9 billion won from 914.5 billion won during the same period. Sales rose 7.9 percent to 26.42 trillion won from 24.48 trillion won.

kyongae.choi@yna.co.kr

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