39 minutes
PETALING JAYA: LOTTE Chemical Titan Holding Berhad (LCT or the Group) announced its first quarter financial results for the period ending March 31, 2024 (1Q FY2024).
The Group recorded revenue of RM1.9 billion, a decrease of 2.7% compared to the same period of the preceding year, mainly attributed to continued challenges arising from lower sales volume. Despite lower revenue, the Group recorded a reduced net loss of RM189.2 million in 1Q FY2024, compared to RM231.6 million in the corresponding period last year, primarily stemming from lower sales volume; and decreased in the share of losses from associate company, LOTTE Chemical USA Corporation .
The Group reported a 44.2% year-on-year improvement in loss before interest, taxes, depreciation, and amortisation (LBITDA) at RM61.1 million for 1Q FY2024, compared to RM109.6 million LBITDA reported in the corresponding period last year.
President and CEO, Mr Park Hyun Chul commented, “Looking ahead, LCT remains cautious in managing the business due to uncertainties arising from oil price volatility, petrochemical glut, and a slowdown in economic activity due to inflationary pressures and escalating geopolitical tensions.”
Despite the challenges, he added LCT is determined to advance its operational performance and further solidify LCT’s market position. With an utilisation rate of 65%, in line with previous guidance, they will focus on optimising production outputs, implementing efficient cost and cash flow management practices, and positioning the Group for long-term sustainability.
The Group, he said is committed to a plant turnaround in the coming period, focusing on efficiency improvements, enhancing plant performance, and significantly improving plant safety.
Concurrently, he added the construction of the LOTTE Chemical Indonesia New Ethylene (LINE) Project is progressing on schedule and expected to be completed by 2025. This strategic expansion will increase the Group’s total production capacity by 65%.
