DL Group posts strong first-half earnings across petrochemicals, energy and construction

DL Group significantly improved profitability across its major business lines — petrochemicals, energy and construction — in the first half of this year, with its portfolio-enhancement strategy and profit-focused management delivering tangible results and broadening the foundation for growth.

According to industry sources, DL Co. posted consolidated sales of 2.95 trillion won ($2.18 billion) and operating profit of 369.4 billion won in the first half. In the second quarter alone, both sales and operating profit reached all-time quarterly highs, driven by improved margins in the petrochemical segment and strong performances from key subsidiaries including DL Energy and Glad.

The petrochemical segment led the earnings improvement at DL Co. Even as global petrochemical market conditions remained sluggish, the competitiveness of high-value specialty products and a more diversified overseas production base drove the gains.

DL Chemical recorded consolidated second-quarter sales of 1.45 trillion won and operating profit of 185.1 billion won. Operating profit for the period surged 229.4 percent quarter-on-quarter and 450.9 percent year-on-year. Industry observers attributed the improvement not only to higher sales volumes but also to widening spreads.

On a standalone basis, DL Chemical posted sales of 459.1 billion won and operating profit of 63.4 billion won. Sales volumes of polyethylene and polybutene dipped slightly due to utilization rates at some facilities, but higher product prices and wider spreads offset the volume decline. Polybutene in particular maintained strong profitability, supported by favorable supply-and-demand conditions.

US subsidiary Kraton posted second-quarter sales of 868.2 billion won and operating profit of 104.6 billion won, with sales rising 23.8 percent year-on-year. Both its polymer and chemical businesses benefited from higher volumes, price increases and spread expansion, lifting the operating profit margin from 0.6 percent in the same period last year to 12.0 percent in the second quarter.

DL E&C also improved its profitability. Through selective order intake and rigorous cost management, the company posted first-half operating profit of 316.8 billion won — up 53 percent from the same period last year — on sales of 3.53 trillion won.

DL Energy's growth was equally notable. Its second-quarter sales rose 74 percent year-on-year and operating profit jumped 121 percent, driven by increased power sales at major plants and higher capacity payments at its US facilities.

"Our global power generation assets, including the Niles and Fairview plants in the United States, are providing a stable earnings base," a DL Energy official said. "Our 160 MW Yeosu Geumodo offshore wind project was selected in the public-led category of the first-half 2026 fixed-price contract competitive bidding for wind power, securing a stable revenue stream through a 20-year fixed-price contract."

Glad also delivered strong results, buoyed by a rise in foreign tourist arrivals. With both average spending per guest and occupancy rates climbing, the unit's second-quarter operating profit margin reached 33.1 percent — record highs for both sales and operating profit on a second-quarter basis.

DL E&C stood out particularly in construction order wins. The company secured new orders totaling 5.24 trillion won in the first half, including major urban redevelopment projects such as Seongnam Sinheung District 1, Daejeon Doma District 13, Hannam District 5 and Mokdong Complex 6.

DL Group plans to accelerate its expansion into future growth businesses on the back of its solid earnings and financial structure. The group aims to strengthen its competitiveness in power generation, energy and small modular reactor businesses in response to rising global electricity demand and the energy transition.

Data centers are another growth area the group is targeting. Subsidiary DL Construction won a contract in the first half for a 126.8 billion won AI data center project in Bucheon, while DL E&C is pursuing large-scale projects in the Chungcheong region and the Greater Seoul area.

"The first half of this year was a period in which our strategy of strengthening core competitiveness across business segments and focusing on profitability translated into real results," a DL Group official said. "Building on our solid financial structure and the expertise of each affiliate, we will continue to reinforce the competitiveness of our existing businesses while actively pursuing new opportunities in future growth areas such as energy, SMR and data centers."

DL Group is also active on the environmental, social and governance front. DL Co. recently published its fourth integrated sustainability report, which includes a group-wide climate scenario analysis and an enhanced framework for responding to climate change. The report covers domestic operations of major affiliates including DL Co., DL Chemical, DL E&C, DL Energy, Glad Hotels & Resorts, DL Construction and Pocheon Power.