Kumho Petrochemical (011780.KS) posted Q1 2026 consolidated revenue of ₩1,780.0 billion (−6.7% YoY), operating profit of ₩59.4 billion (−50.7%), and net profit of ₩96.3 billion (−22.8%), as a crude-oil spike triggered by the U.S.-Iran conflict drove feedstock costs higher while equity-method income and affiliate dividends cushioned the bottom line.
A geopolitical oil shock erased months of spread improvement, cutting Kumho Petrochemical's operating profit in half — yet equity-method income from joint ventures contained the net-profit damage to less than a quarter.
Source: Q1 2026 Quarterly Report (50th Fiscal Year, 1st Quarter) — Filed May 15, 2026 with DART | Consolidated Financial Statements | Unit: ₩ billions
Kumho Petrochemical reported Q1 2026 consolidated operating profit of ₩59.4 billion, a 50.7% collapse from ₩120.6 billion a year earlier, as the outbreak of the U.S.-Iran war in late February triggered a sharp crude-oil price spike that drove feedstock costs higher faster than the company could reprice its products. The operating margin compressed from 6.3% to 3.3% — a 3.0-percentage-point implosion driven by a 2.6-percentage-point deterioration in the cost-of-sales ratio to 92.4%, the mechanical consequence of the lag between rising raw-material inputs and sticky customer contract prices. Net profit, however, fell only 22.8% to ₩96.3 billion: ₩36.8 billion in equity-method income from joint ventures including Kumho Mitsui Chemicals, combined with ₩35.6 billion in dividends received from affiliates, provided a non-cyclical earnings floor that absorbed the core-business shortfall. Free cash flow turned positive at ₩55.3 billion as capital expenditures were deliberately cut by 64% to ₩29.4 billion, marking a clear shift to capital-preservation mode for the duration of the trough.
