Korean based, LOTTE Chemical Titan Holding Berhad announced its first quarter financial results for the period ending 31 March 2024 recording revenue of RM1.9 billion, which is a decrease of 2.7% compared to the same period of the preceding year. The group attributes the decrease due to continued challenges arising from lower sales volume.
For the quarter the group recorded a reduced net loss of RM189.2 million, compared to RM231.6 million in the corresponding period last year, which it said was primarily reduces losses in associate company.
Lotte said the decreased in the share of losses from associate company, LOTTE Chemical USA Corporation was reported at 44.2% year-on-year, an improvement in loss before interest, taxes, depreciation, and amortisation (LBITDA) at RM61.1 million for 1Q FY2024, compared to RM109.6 million LBITDA reported in the corresponding period last year.
President and CEO, Mr Park Hyun Chul commented, “Looking ahead, LCT remains cautious in managing the business due to uncertainties arising from oil price volatility, petrochemical glut, and a slowdown in economic activity due to inflationary pressures and escalating geopolitical tensions.
Looking ahead, Lotte said the utilisation rate of 65%, is in line with previous guidance,nd will focus on optimizing production outputs, implementing efficient cost and cash flow management practices, and positioning the Group for long-term sustainability.
It also said the construction of the LOTTE Chemical Indonesia New Ethylene (LINE) Project is progressing on schedule and expected to be completed by 2025. The expansion will increase the Group’s total production capacity by 65%.
