LCTitan posts net profit of RM186.84mil in 4Q

KUALA LUMPUR: Lotte Chemical Titan Holding Bhd posted a net profit of RM186.84mil in the fourth quarter ended Dec 31, 2021, a 23.6% increase over RM151.16mil in the previous corresponding quarter.

For 4QFY21, the group reported revenue of RM2.68bil, a 39.63% jump over the same quarter in the previous year

Over the entire financial year, net profit rose to RM1.06bil compared to RM148.59mil while revenue surged 42.45% to RM9.83bil.

In a statement, the group said it generated strong operating cash flows amounting to about RM1.2bil for the financial year.

It said the significant improvement was mainly owing to the much higher key products margin spread in 2021 due to much higher average product selling prices.

In addition, the group said its performance was further supported by performance turnaround in its US associate’s operations on the back of improved operating performance with better product margin spread.

The group also underwent a statutory turnaround in the third quarter for a cracker plant and a polethylene plant in Malaysia.

Following the resumption of normal operations in the fourth quarter, the overall operating rate of the complex improved in the last quarter to 88%, from 76% recorded in the previous quarter, which also led to higher production volume.

Notwithstanding the turnaround activities in 2021, the Group operating rate recorded at 84%, which is relatively higher than the 82% recorded in 2020, it said.

“This is indeed an excellent achievement despite the challenging business environment with the continuation of the pandemic throughout 2021,”

said president and CEO Park Hyun Chul.

On outlook, he said the group is cautiously optimistic on the petrochemical market outlook with some balancing market factors weighing on the sector.

"Given that our naphtha feedstock correlates with the crude oil outlook, rising global crude oil price will notably be an area of concern.

"In addition, there are new additional domestic capacity expected to come online this year, which potentially have downward pressure on the product prices.

"On the other hand, stable demand with the easing of lockdown measures coupled with freight constraints and regional supply disruptions would lead to firm footing for the overall product prices," said Park.

He aded that the group will review the final dividend payable for FY2021 at a later date.
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