09-05-2025
- Business
- New Straits Times
Lotte Chemical Titan jumps 16pct, volume hits four-year high
KUALA LUMPUR: Shares of Lotte Chemical Titan Holding Bhd surged nearly 16 per cent in morning trade, with volume hitting a four-year high after the company secured a 10-year supply contract worth over RM743.5 million in Indonesia.
The stock opened slightly higher at 56 sen, up 2.8 per cent from its previous close of 54.5 sen, and climbed as much as 15.6 per cent to a morning high of 63 sen before the midday break.
By midday, it pared some gains to settle at 60 sen, up 10.1 per cent, with 35.95 million shares traded — the highest volume since May 3, 2021.
Lotte Chemical Titan manufactures and sells petrochemical products, mainly olefins and polyolefins.
On Thursday, the company announced that its Indonesian unit, PT Lotte Chemical Indonesia (LCI), secured a 10-year ethylene supply deal with PT Asahimas Chemical.
The contract, which runs from July 1, 2025, to June 30, 2035, is based on market pricing and is expected to exceed 10 per cent of Lotte Chemical Titan's latest annual consolidated revenue.
Based on the group's 2024 revenue of RM7.44 billion, the deal could potentially be valued at more than RM743.5 million.
For the first quarter ended March 31, 2025, Lotte Chemical Titan reported a net loss of RM125.67 million, narrowing from RM178.03 million a year earlier.
Revenue for the quarter fell 22.3 per cent to RM1.49 billion from RM1.92 billion due to lower sales volume and average selling prices.
The quarter marked its eighth consecutive quarterly loss, though losses narrowed year-on-year due to improved margins and contributions from a US associate.
Asahimas Chemical is an integrated chemical producer for downstream industries in Indonesia.
LCI is developing the Lotte Chemical Indonesia New Ethylene (Line) project, expected to be completed in the second half of 2025.
The facility will have a production capacity of one million tonnes of ethylene per year.
Lotte Chemical Titan said part of the output will be used internally, with the remainder sold to the market.
