Lotte Chemical Titan posts wider net loss in 2Q23

KUALA LUMPUR: Lotte Chemical Titan Holding Bhd expects the outlook of the petrochemical industry to remain volatile.

“In general, we have experienced a challenging period under the weight of a deteriorating external environment. The market volatility is expected to remain elevated arising from the slower economic growth as policymakers raised interest rates to tame inflation. Besides, new capacities that have gradually come onstream posed downward pressure on petrochemical prices.

“Against the backdrop, the management is steadfast to its optimisation plan by balancing our production outputs and economic efficiencies while maintaining strict cost management to ensure the financial positions of the group remain healthy,” president and chief executive officer Park Hyun Chul said in a statement.

“As we head into the second half of 2023, we will remain true to our core values and mission with a relentless focus on business sustainability. We will continue to implement proactive measures to navigate through this volatile environment,” he said.

Park noted that the LOTTE Chemical Indonesia ethylene (LINE) project in Indonesia is progressing on schedule and set to be the growth driver for the group, filling up the gap of Indonesia as a net importer of petrochemical products. The project is slated for completion in 2025.

In the second quarter ended June 30, Lotte reported a wider net loss of RM313.5mil against RM145.9mil last year.

Revenue for the quarter tumbled 34% to RM1.86bil from RM2.8bil a year ago while loss per share stood as 13.76 sen versus 6.41 sen previously.

In the first six months to June 30 (1H23), Lotte recorded revenue of RM3.8bil, a decrease compared to the same period last year due to lower sales volume and selling prices.

In 1H23, the group registered a net loss of RM559.3mil due to the factors stated above and a share of losses from LOTTE Chemical USA Corporation (LC USA).