Lotte Chemical Titan reports narrowed losses amid revenue decline

About this update from Lotte Chemical Corporation

Lotte Chemical Titan Holding Bhd. (Selangor, Malaysia), a subsidiary of Lotte Chemical Corp. (Seoul), has reported a narrowing of its net loss for the second quarter, amounting to 173 million Malaysian ringgit (approximately $40.8 million), down from 248.8 million ringgit in the previous-year period, as per Chemweek.This improvement is primarily attributed to enhanced margins, alongside a decrease in distribution and administrative expenses. Additionally, the company benefited from a one-off insurance claim related to a business interruption incident that occurred in 2022. Despite the reduction in losses, Lotte Chemical Titan reported a decline in revenue, which fell by 19.2% year-over-year to 1.4 billion ringgit. This downturn can be largely explained by weaker average selling prices and the depreciation of the Malaysian ringgit against the US dollar.In the second quarter, the company reported an average plant utilization rate of 46%, a decrease from 47% in the same quarter of the previous year.Looking ahead, Lotte Chemical Titan remains cautious about the global business environment, which is expected to remain volatile in the near term. The company is wary of ongoing geopolitical tensions, including the Russia-Ukraine war and unrest in the Middle East, which pose significant risks to market stability. Furthermore, the emergence of US reciprocal tariffs is reshaping global trade dynamics, adding another layer of complexity to the business landscape. The company said persistent oversupply of petchem products is affecting the supply and demand dynamics, both regionally and globally.mrchub.com

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