Lotte Chemical Titan Holding Berhad (LCT) posted a wider net loss for the second quarter ended June 30, 2026 (Q2 FY2026), as higher revenue from its Indonesian petrochemical operations was offset by inventory write-downs and increased costs associated with its new ethylene complex.
The petrochemical producer reported revenue of RM3.11 billion, more than doubling from RM1.44 billion a year earlier, driven by the first full-quarter contribution from the LOTTE Chemical Indonesia New Ethylene (LINE) Project, which commenced commercial operations in October 2025, as well as higher average selling prices.
However, the group’s loss for the quarter widened to RM401 million, compared with RM189 million in the corresponding quarter last year.
Lotte Chemical Titan said the weaker performance was primarily due to inventory write-downs to net realisable value, alongside higher depreciation and interest expenses arising from the LINE Project. These were partly mitigated by improved product margins earlier in the quarter and contributions from its associate, Lotte Chemical USA Corporation.
The Indonesian LINE project continued to lift the group’s operating scale, with average plant utilisation improving to 50% during the quarter from 46% a year earlier, reflecting additional production from the new facility.
Despite the higher utilisation, the company said the weakening of the US dollar against the ringgit partially offset the benefit of stronger sales.
Compared with the preceding quarter, revenue rose 23% from RM2.53 billion to RM3.11 billion, supported by higher average selling prices despite lower sales volumes.
Average plant utilisation, however, declined to 50% from 61% in the first quarter of FY2026 as production levels normalised.
The group’s loss before tax widened to RM396 million in Q2 from RM230 million in the previous quarter, mainly due to inventory write-downs. The deterioration was partly cushioned by profit contributions from Lotte Chemical USA Corporation.
