Lotte Chemical posts Q3 net profit of RM48.8mil

PETALING JAYA: Lotte Chemical Titan Holding Bhd’s net profit fell 38% to RM48.8mil in the third quarter ended Sept 30 against RM78.7mil in the same quarter a year ago.

The petrochemical producer said the lower net profit was mainly due to the underprovision of deferred tax expenses, which resulted from tax adjustments arising from tax audits and certain non-tax deductible expenses.

Its revenue for the quarter rose 15% to RM2.23bil from RM1.94bil.

This was mainly due to the increase in average product selling prices following the firmer feedstock costs.

In the first nine months to Sept 30, Lotte Chemical posted a net profit of RM871.14mil against a net loss of RM2.57mil.

At the same time, its earnings before interest, tax, depreciation and amortisation more than tripled to RM1.5bil, from RM485mil booked during the same period last year.

The group’s revenue increased by 44% from RM 4.97bil to RM7.14bil, mainly due to the increase in average product selling prices.

“Riding on the back of its stellar performance to-date in 2021, the company has introduced and declared its first-ever special dividend of 18 sen per ordinary share, which amounted to approximately RM410mil distributable dividend to its shareholders,” Lotte Chemical said in a statement yesterday.

The special payment, which represents about 50% payout from its earnings, would translate to an attractive yield in excess of 6% based on its share price of RM2.74, last traded on Oct 27.

This special distribution will be independent of its dividend policy and its board of directors upon closing of the financial year will determine the subsequent final dividend payable for financial year 2021.

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