KUALA LUMPUR: Lotte Chemical Titan Holding Bhd's (LCT) net loss narrowed to RM178.03 million for the first quarter of the financial year ended March 31, 2024 (1Q FY2024) compared with a net loss of RM224.76 million in the same quarter in 2023.
In a filing with Bursa Malaysia, the group said the reduced net loss was primarily due to lower sales volume and a decrease in the share of losses from associate company Lotte Chemical USA Corporation.
Revenue was lower by 2.7 per cent to RM1.92 billion against RM1.97 billion in 1Q FY2023, mainly attributed to continued challenges arising from lower sales volume.
Segment-wise, LCT said revenue for polyolefin products contracted to RM1.51 billion in 1Q FY2024 versus RM1.61 billion in the corresponding quarter previously, mainly due to lower sales volume from products with squeeze margin and weakening in average selling price.
It said revenue for olefins and derivative products grew to RM405.3 million in 1Q FY2024 against RM358.8 million previously, but the revenue increase was partially offset by lower sales volume.
"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.
"Despite the challenges, LCT is determined to advance its operational performance and further solidify its market position," said president and chief executive officer Park Hyun Chul.
With a utilisation rate of 65 per cent, in line with previous guidance, he said LCT would focus on optimising production outputs, implementing efficient cost and cash flow management practices, and positioning the group for long-term sustainability.
Park also said the group was committed to a plant turnaround in the coming period, focusing on efficiency improvements, enhancing plant performance, and significantly improving plant safety.
"Concurrently, the construction of the Lotte Chemical Indonesia New Ethylene (Line) project is progressing on schedule and is expected to be completed by 2025.
"This strategic expansion will increase the group's total production capacity by 65 per cent," he said.
LCT, a subsidiary of Lotte Chemical Corporation under the Lotte Group, is Malaysia's first standalone polyolefin producer and one of the largest integrated olefin and polyolefin producers in Malaysia and Southeast Asia. - Bernama