LOTTE Chemical Titan Holding Berhad has announced its fourth quarter financial results ended 31 December 2023 (4Q FY2023) with revenue amounting to RM1.86 billion compared to RM2.07 billion in the same quarter last year. Lotte attributed the decline to lower sales volume due to slower economic activities in the region.
Net loss was at RM197.3 million, representing a 42% year-on-year (YoY) improvement compared to a net loss of RM342.5
million in the same period last year. The improvement it said was largely attributable to improved margin spreads resulting from lower feedstock costs and a foreign exchange gain.
In the financial year ended 31 December 2023 (FY2023), the revenue of the Group declined to RM7.65 billion while the Group’s net loss increased by 9% YoY to RM812.7 million. The weaker performance was mainly due to, decline in margin spreads; Share of loss from LOTTE Chemical USA Corporation (LC USA); partially offset by and Reversal of inventory write-down to its net realisable value.
Full year loss accumulated to RM780 million higher than 2022 loss of RM731 million.
President and CEO, Mr Park Hyun Chul commented, “2023 remained a very challenging year amid lower economic growth in China and Europe. The conflict in the Middle East has elevated the volatility of crude oil prices which are highly correlated with the prices of our feedstock, naphtha. Against the backdrop of the market uncertainties, the Group has implemented the business optimisation plan by balancing our production outputs and economic efficiencies, leading to a lower overall plant utilisation of 67% in FY2023 compared to 77% in the corresponding year.”
“The construction of the LOTTE Chemical Indonesia New Ethylene (LINE) Project is progressing on schedule. The project serves as a key strategic expansion for the Group, contributing an additional 65% to the total existing production capacity of the Group upon its completion in 2025. The LINE Project will enable us to capitalise on the anticipated demand for our products in Indonesia given that the country is a net importer of petrochemical products,” he continued.
“Despite the challenging business environment, we are committed to delivering sustainable growth to our stakeholders. We will continue to implement our optimisation plan and enhance our product quality while upholding disciplined management of our costs and financial liquidity. We will stay true to our core values and mission, and forge ahead to become a Top Tier Petrochemical Company in Southeast Asia,” added Mr Park.
