KUALA LUMPUR: Lotte Chemical Titan Holding Bhd’s net profit eased to RM439.73 mil in the financial year ended Dec 31, 2019 (FY2019), from RM783.33 mil a year earlier.
Revenue fell to RM8.48 bil from RM9.24 bil in FY2018 while earnings per share declined to 19.35 sen from 34.46 sen previously.
Established in 1989, Lotte Chemical Titan is Malaysia’s first and largest integrated producer of olefins and polyolefins, and one of the largest polyolefins producer in Southeast Asia, with 11 plants, two co-generation plants and three tank farms in Johor.
In a statement today, the company attributed its performance to a notable drop in the average selling price of its products in FY2019.
However, it said, the effect was partially mitigated by the increase in sales volume, driven by higher production and continuous improvement in overall operating rates although the Sino-US trade conflict had diverted flows of cheaper polymer supplies into Asean countries, subsequently affecting regional polymer prices.
The company’s overall plant operating rate increased to 88% in FY2019 from 83% a year ago and this contributed to a higher production volume.
Moving forward, Lotte Chemical cautioned that the petrochemical industry would remain challenging due to persisting global market uncertainties arising from the geopolitical tensions in the Middle East as well as the softening global economic outlook.
“The petrochemical industry is undergoing a very challenging phase amidst global market uncertainties. However, in line with our vision and sustainable growth strategies, the company is actively pursuing further growth opportunities locally.
“Over the next five years, we will focus on on key growth strategies to achieve our vision to be a top-tier petrochemical company in Southeast Asia,” said president and CEO Dr Lee Dong Woo. – Jan 30, 2020, Bernama
