KUALA LUMPUR: Lotte Chemical Titan Holding Bhd
’s net loss widened to RM780.28 million in the financial year ended Dec 31, 2023 (FY2023) from RM731.06 million in FY2022, mainly due to lower tax credit recorded.
In a filing with Bursa Malaysia today, Lotte said its revenue decreased by 23.7 per cent to RM7.65 billion versus RM10.02 billion, due to lower average product selling price and sales volume amid weaker demand for manufactured goods.
It also said revenue for olefins and derivative products decreased by 30.6 per cent from RM2.07 billion in 2022 to RM1.44 billion in 2023.
The decrease in revenue was mainly due to lower average product selling price and sales volume.
Polyolefin products revenue decreased by 21.9 per cent to RM6.21 billion in 2023, mainly due to lower average product selling price and sales volume.
As for the fourth quarter of FY2023, the group’s net profit narrowed to RM186.48 million from RM333.64 million, with the improvement largely attributable to improved margin spreads resulting from lower feedstock costs and foreign exchange gain.
Revenue was reduced to RM1.86 billion from RM2.07 billion, mainly due to lower sales volume, as demand was hindered by slower economic activities in the region.
President and chief executive officer Park Hyun Chul said the construction of the Lotte Chemical Indonesia New Ethylene (LINE) project is progressing on schedule.
He said the project serves as a key strategic expansion for the group, contributing an additional 65 per cent to the total existing production capacity upon its completion in 2025.
"The LINE project will enable us to capitalise on the anticipated demand for our products in Indonesia given that the country is a net importer of petrochemical products,” he said.
Barring unforeseen circumstances and taking into consideration plant utilisation rate and business optimisation, the operating rate guidance for FY2024 is 65 per cent to 70 per cent.
Against the backdrop of the volatile external environment, the group continues to monitor vigilantly the global and regional economic conditions along with the aggregate supply and consumption patterns of the petrochemical industry.
Nevertheless, it remains steadfast in its optimisation plan by balancing production outputs and economic efficiencies while maintaining a disciplined approach to managing costs and financial liquidity. - Bernama
