KUALA LUMPUR: Lotte Chemical Titan Holding Berhad (LCT) remains cautious due to uncertainties arising from oil price volatility, petrochemical glut, economic slowdown from inflation, and rising geopolitical tensions.
“Despite the challenges, 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, we will focus on optimising production outputs, implementing efficient cost and cash flow management practices, and positioning the group for long-term sustainability,” president and CEO Park Hyun Chul said in a statement.
He added that the group is committed to a plant turnaround in the coming period, focusing on efficiency improvements, enhancing plant performance, and significantly improving plant safety.
“Concurrently, 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%,” Park said.
In the first quarter ended March 31, LCT’s net loss narrowed to RM178.02mil, or loss per share of 7.82 sen compared with a net loss of RM224.7mil, or 9.87 sen posted in the same quarter last year.
LCT attributed the net loss to lower sales volume and decreased in the share of losses from associate company, Lotte Chemical USA Corp.
Its revenue for the quarter was lower at RM1.92bil against RM1.97mil a year ago, mainly due to continued challenges arising from lower sales volume.