Lotte Chemical Titan records net loss of RM714.64 mln in FY22

KUALA LUMPUR: Lotte Chemical Titan Holding Bhd (LCT) recorded a net loss of RM714.64 million in the financial year ended Dec 31, 2022 (FY22), from a net profit of RM1.04 billion in FY21.

This was mainly due to a decline in margin spread, an increase in a write-down of inventories to net realisable value by RM118.5 million, losses from foreign exchange differences and a decrease in the share of profit from Lotte Chemical USA Corp (LC USA) amounting to RM24 million compared to RM203.1 million in the corresponding year.

The higher profit in LC USA in FY2021 is mainly due to higher profit margin and one-off gain on disposal of equity interest in joint venture operation.

Revenue, however, rose to RM10 billion from RM9.83 billion following the increase in average product selling price arising from higher feedstock cost, LCT said in a filing with Bursa Malaysia.

It also said revenue for olefins and derivative products increased from RM1.93 billion in FY21 to RM2.07 billion amid the increase in average product selling price.

The segment recorded a loss before tax (LBT) of RM331.9 million compared to a profit before tax (PBT) of RM118.2 million due to a margin squeeze resulting from higher feedstock costs.

Polyolefin products revenue increased marginally from RM7.9 billion in FY2021 to RM7.95 billion in FY22.

The segment recorded an LBT of RM703.6 million compared to a PBT of RM923.4 million in the corresponding year amid a margin squeeze resulting from higher feedstock cost and lower average product selling price compared to FY21.

As for the fourth quarter of FY2022, the group posted a net loss of RM317.22 million from a net profit of RM168.89 million following the decline in margin spread, RM 32.7 million losses from the foreign exchange and share of loss from LC USA.

Revenue was reduced to RM2.07 billion from RM2.68 billion mainly due to the decrease in average selling price and sales volume. — Bernama