E1 and Lotte Chemical Sign ₩678.2B LPG Deal: What Happened?
On July 31, 2025, E1 announced a ₩678.2 billion LPG supply contract with Lotte Chemical. The contract period is 1 year and 8 months, from June 1, 2026, to January 31, 2028. This represents 6.06% of E1’s recent annual revenue and is expected to significantly impact E1’s future performance.
How Will the Deal Impact E1’s Stock Price?
Positive Factors:
- • Increased Revenue and Profitability: Stable sales are expected to improve profitability.
- • Enhanced Financial Stability: The large-scale contract will improve cash flow and strengthen the financial structure.
- • Future Growth Momentum: The partnership with Lotte Chemical opens up future business expansion possibilities.
Negative Factors:
- • LPG Price Volatility: Actual profits may differ from projections depending on LPG price fluctuations.
- • Cost Management: E1’s cost management capabilities will significantly influence profitability.
Investment Strategy: Consider Key Variables
Macroeconomic indicators such as oil prices, exchange rates, and interest rates significantly influence E1’s stock price. Rising oil prices tend to have a positive impact, while a strong Korean Won can have a negative impact. Therefore, carefully analyze these variables before making investment decisions.
Action Plan for Investors
Develop a long-term investment strategy rather than reacting to short-term stock price fluctuations. It’s crucial to carefully review the actual contract implementation and profit status through future quarterly reports and continuously monitor changes in macroeconomic indicators.