Lotte Chemical posts Q4 earnings of RM151.16mil

“The looming Covid-19 has affected global economy, resulting in poor business sentiment and weakened demand, especially during the beginning of the pandemic outbreak in early 2020, ” said the group.

KUALA LUMPUR: Lotte Chemical Titan Holding Bhd recorded a 19.49% decline in net profit to RM151.16mil in the fourth quarter ended Dec 31,2020, as compared to RM187.76mil in the same quarter last year.

The group said in a filing with Bursa Malaysia that the weaker performance was owing to a decrease in average product selling price and sales in volume in the olefins and derivative products segment during the quarter.

Segment revenue fell to RM332.6mil from RM448.9mil in the previous corresponding quarter. This resulted in a pre-tax loss of RM17.5mil versus a pre-tax profit of RM5.5mil a year earlier.

In the polyolefin products sector, revenue was seen marginally increasing to RM1.59bil from RM1.53bil in the fourth quarter of 2019.

This was owing to an increase in average product selling price although it was partially offset by lower sales volume.

The segment recorded a pre-tax profit of RM276.7mil, as compared to a pre-tax loss of RM7.3mil in the previous year.

For the entire financial year 2020 (FY20), Lotte Chemical’s net profit came in at RM148.59mil, which was significantly lower than the net profit of RM439.72mil in 2019.

Revenue in FY20 was RM6.9bil, 18.21% lower than RM8.44bil recorded in the previous year.

“The looming Covid-19 has affected global economy, resulting in poor business sentiment and weakened demand, especially during the beginning of the pandemic outbreak in early 2020, ” said the group.

“Apart from the pandemic outbreak, reduction in production quantity resulting from the major statutory plant turnaround conducted in the first half of 2020 has also led to the decrease in sales volume, ” it added.