Lotte Chemical Titan’s 4Q net loss widens to RM1.67bil on impairments, margin squeeze
KUALA LUMPUR: Lotte Chemical Titan Holding Bhd
’s (LCT) net loss widened to RM1.67bil in the fourth quarter ended Dec 31, 2025 (4Q25), from RM590.13mil in the corresponding quarter a year ago.
LCT said the losses were mainly due to impairment losses on property, plant and equipment and right-of-use assets, as well as margin spread compression.
It also cited changes in inventories written down to net realisable value, in addition to higher depreciation and interest expenses following the commercialisation of the Lotte Chemical Indonesia New Ethylene (LINE) project.
Revenue rose 43.2% to RM2.57bil from RM1.8bil previously, mainly supported by higher sales volume, while loss per share widened to 73.36 sen from 25.91 sen.
“The increase in sales volume was driven by LINE project, which was commercialised in October 2025. The revenue growth was partially offset by a weakening in average selling price,” LCT said.
Average plant utilisation increased to 61% in 4Q25 following the inclusion of the LINE project.
For the financial year ended Dec 31, LCT posted a wider net loss of RM2.14bil compared with RM1.26bil previously, while revenue increased to RM7.94bil from RM7.43bil a year earlier.
“The Group expects the global business environment to remain volatile and uncertain in the near future. Geopolitical tensions, such as the Russia-Ukraine war and persistent unrest in the Middle East, continue to contribute to price swings across global supply chains.
“Regional markets continue to reflect oversupply and weak pricing environment for selected petrochemical products, as capacity additions outpace demand growth, especially in key markets like China and Southeast Asia,” LCT said.
Despite these headwinds, the Group remains committed on its markets in Malaysia, Indonesia, and the Southeast Asia region.
