SEOUL-- LG Chem Ltd. said Wednesday its first-quarter net profit shrank 43.9 percent from a year earlier, as a recent rise in global crude oil prices deteriorated the profitability in its main petrochemical business.

Net income came to 769.2 billion won (US$608 million) in the January-March period, compared with 1.3 trillion won the previous year, the company said in a regulatory filing.

Operating profit fell 27.3 percent on-year to 1.02 trillion won. Revenue increased 20.4 percent to 11.6 trillion won.

The earnings beat market expectations. The average estimate of net profit by analysts stood at 600.1 billion won, according to the survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

The weaker bottom line came as higher raw material costs, stemming from the rise in global oil prices, dented profitability in its main petrochemical business, the company said.

The petrochemicals division posted 634.6 billion won in operating profit, with 5.96 trillion won in sales.

Its advanced materials business raked in the record quarterly revenue of 1.56 trillion won, with the operating profit at 153.8 billion won, on the back of increased output of high-nickel cathodes for electric vehicle batteries and other display and semiconductor components.

LG Chem's life sciences division posted 217.4 billion won in sales and 32.2 billion won in operating income, due largely to solid sales of antidiabetic drugs.

Shares in LG Chem fell 2.53 percent to 463,000 won on the Seoul bourse on Wednesday, underperforming the broader KOSPI's 1.1 percent decline. The earnings results were released after the market closed.

Source: Yonhap News Agency