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BUSINESS

Lotte Chemical Titan's Q1 net profit declines to RM104 mln

28/04/2022 05:51 PM

KUALA LUMPUR, April 28 (Bernama) -- Lotte Chemical Titan Holding Bhd’s net profit for the first quarter ended March 31, 2022, (Q1FY22) declined to RM104 million from RM440 million registered in the same quarter a year ago.

Revenue, however, rose to RM2.76 billion from RM2.37 billion previously.

In a filing with Bursa Malaysia today, it said the lower earnings was attributed to the higher feedstock costs given that the naphtha feedstock costs of the company correlate with the crude oil prices, therefore, rising global crude oil prices have negatively impacted the financial performance of the company.

“During the period, the feedstock costs of the company have increased by 64 per cent year-on-year,” it said.

In a separate statement, president and chief executive officer Park Hyun Chul said the company is operating in a challenging business environment amid the geopolitical crisis in Ukraine.

“Tension over Ukraine is not abating and the prospect of sanctioning Russian crude oil has escalated the crude oil prices.

“The increase in crude oil prices poses a significant pressure on our operating costs as our primary feedstock, naphtha, is highly correlated with crude oil prices,” he said.

Meanwhile, Park said Lotte Chemical Titan has commenced the construction of Lotte Chemical Indonesia New Ethylene (LINE) project in January and is expected to complete in 2025.

“We believe that the LINE project will equip our Group with the ability to capitalise on the growth of the petrochemical industry in Indonesia as well as the Southeast Asia region.

“It will enable us to capture a larger market share and to position the group to be the Top-Tier Petrochemical Company in the region,” he added.

-- BERNAMA


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