Q2 net profit slips on higher costs

New Straits Times - - Business / News -

KUALA LUMPUR: Lotte Chem­i­cal Ti­tan Hold­ing Bhd’s net profit slumped 72 per cent year-onyear in the sec­ond quar­ter ended June 30.

The news pushed its share price down 23.33 per cent to RM4.70 yes­ter­day.

Since its July 11 de­but on Bursa Malaysia at RM6.50 per share, the counter has lost as much as 14.31 per cent.

The com­pany’s sec­ond-quar­ter net profit dropped to RM113.62 mil­lion from RM404.03 mil­lion in the same quar­ter last year, on high in­ven­tory cost car­ried for­ward from turn­around ac­tiv­i­ties in the pre­vi­ous quar­ter and higher unit pro­duc­tion cost due to wa­ter in­ter­rup­tion in April.

Rev­enue dipped 11 per cent year-on-year to RM1.78 bil­lion from RM2 bil­lion on lower sales vol­ume in the pe­riod, said the com­pany in a fil­ing to Bursa Malaysia yes­ter­day.

For the first half of this year, its net profit was down 33 per cent year-on-year to RM455.77 mil­lion from RM676.2 mil­lion pre­vi­ously.

Group rev­enue de­clined seven per cent to RM3.69 bil­lion from RM3.99 bil­lion.

The com­pany said an un­planned wa­ter in­ter­rup­tion by a state wa­ter con­ces­sion­aire in April had re­sulted in its plants be­ing shut down for be­tween two and 11 days.

“Al­though op­er­a­tions were restarted within two days on a stag­gered ba­sis, pro­duc­tion vol­ume was af­fected by about 75 kilo­tonnes,” it said in a state­ment.

The Hari Raya fes­tive sea­son also im­pacted to­tal sales as heavy ve­hi­cles were banned from ma­jor high­ways in Malaysia and In­done­sia for up to two weeks and de­liv­er­ies had to be de­layed, it added. Za­rina Zakariah

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