KUALA LUMPUR: Lotte Chemical Titan Holding Bhd’s (LCTitan) net loss widened 7% to RM780.28 million in the financial year ended Dec 31, 2023 (FY2023) from RM731.06 million in FY2022, mainly due to lower tax credit recorded.
In a filing with Bursa Malaysia today, LCTitan said its revenue decreased by 23.7% to RM7.65 billion versus RM10.02 billion, due to lower average product selling price and sales volume amid weaker demand for manufactured goods.
As for the fourth quarter (Q4 FY2023), the group’s net loss narrowed to RM186.48 million from RM333.64 million. This shift in financial performance can be primarily attributed to enhanced margin spreads resulting from lower feedstock costs and foreign exchange gains.
Revenue was reduced to RM1.86 billion from RM2.07 billion, mainly due to lower sales volume, as demand was hindered by slower economic activities in the region.
The company said revenue for olefins and derivative products decreased by 30.6% from RM2.07 billion in 2022 to RM1.44 billion in 2023.
“The decrease in revenue was mainly due to lower average product selling price and sales volume,” it said.
Polyolefin products revenue decreased by 21.9% to RM6.21 billion in 2023, mainly due to lower average product selling price and sales volume.
President and CEO Park Hyun Chul said the construction of the Lotte Chemical Indonesia New Ethylene (LINE) project is progressing on schedule.
He said the project serves as a key strategic expansion for the group, contributing an additional 65% to the total existing production capacity upon its completion in 2025.
“The LINE project will enable us to capitalise on the anticipated demand for our products in Indonesia given that the country is a net importer of petrochemical products,” he said.
Barring unforeseen circumstances and taking into consideration plant utilisation rate and business optimisation, the operating rate guidance for FY2024 is expected to be 65% to 70%.
Against the backdrop of the volatile external environment, the group continued to monitor vigilantly the global and regional economic conditions along with the aggregate supply and consumption patterns of the petrochemical industry.
Nevertheless, it remained steadfast in its optimisation plan by balancing production outputs and economic efficiencies while maintaining a disciplined approach to managing costs and financial liquidity.
At the close of trade today, LCTitan’s share price was down by 3 sen or 2.01% at RM1.46, giving it a market capitalisation of RM3.38 billion.