Lotte Chemical Titan trims 2Q net loss to RM173.09mil

New Straits Times

2 days ago

KUALA LUMPUR: Lotte Chemical Titan Holding Bhd (LCT) has narrowed its net loss to RM173.09 million in the second quarter of its financial year ending Dec 31, 2025 (2Q FY2025) from a net loss of RM248.88 million in the same period in FY2024.
In a filing with Bursa Malaysia today, revenue declined by 19 per cent to RM1.43 billion from RM1.78 billion in 2Q FY2024, mainly due to weaker average selling prices and the US dollar against the ringgit.
In 2Q FY2025, the average plant utilisation was 46 per cent, slightly lower than the 47 per cent in 2Q FY2024.
"Despite lower revenue, the group's loss before tax was reduced by 42 per cent to RM191 million in 2Q 2025, primarily attributed to margin improvement.
"The reduction was further contributed by the lower distribution and administrative expenses, along with a one-off insurance claim in respect of a business interruption that happened in 2022," it said.
For the first six months ended June 30, 2025, LCT recorded a net loss of RM298.76 million compared with a net loss of RM426.91 million previously. Revenue fell to RM2.93 billion from RM3.69 billion in the same period last year.
Moving forward, LCT president and chief executive officer Jang Seon Pyo said the company expects global business environment to remain volatile in the near future.
He said ongoing geopolitical tensions, such as the Russia-Ukraine war and unrest in the Middle East, would continue to pose risks. Besides, the United States (US) reciprocal tariff is emerging as a factor that is reshaping global trade dynamics.
In parallel, a persistent oversupply of petrochemical products continues to affect the supply and demand dynamics, both regionally and globally.
"Despite these challenges, we remain committed to maintaining our position in key regional markets, especially in Malaysia, Indonesia, and across Southeast Asia.
"With measured outlooks on regional gross domestic product growth and cautious operating rate projections, we will continue to navigate the current cycle with prudence," he said.
Meanwhile, Jang also said that the Lotte Chemical Indonesia New Ethylene (LINE) Project in Merak, Indonesia is set to commence commercial operations in the second half of 2025. The management will continue to closely monitor market dynamics and provide updates on the project's progress accordingly, he added.
LCT is the subsidiary of Lotte Chemical Corporation under the Lotte Group.