Lotte Chemical Titan warns Middle East tensions cloud petrochemical outlook


KUALA LUMPUR: Lotte Chemical Titan Holding Bhd (LCT) said ongoing geopolitical tensions in the Middle East, particularly the Iran war, continue to weigh on the global petrochemical industry and create an increasingly volatile and uncertain business environment, according to its president and chief executive officer, Jang Seon Pyo.

“We will continue to closely monitor the prevailing geopolitical developments and adapt our operations to meet business objectives and stakeholders’ expectations.

“At the same time, we remain committed on maintaining our position in key regional markets, especially in Malaysia, Indonesia, and across Southeast Asia. With measured outlooks on regional GDP growth and cautious operating rate projections, we will continue to navigate the current cycle with prudence,” Jang said in a statement.

In the first quarter ended March 31 (1Q26), LCT’s net loss narrowed marginally to RM122.7mil compared with RM125.7mil.

Revenue for the quarter jumped 70% to RM2.53bil against RM1.49bil in the year-ago quarter.

“The growth was primarily driven by higher sales volume from the Lotte Chemical Indonesia New Ethylene (LINE) Project, which commenced commercialisation in October 2025,” LCT said.

Despite the higher revenue this quarter, the growth was partially offset by the weakening in both the US dollar against ringgit and the average selling price.

The average plant utilisation rose to 61% in 1Q26, compared to 46% in the same period last year, reflecting contributions from the LINE Project.

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