Lotte Chemical 1Q profit slashed on forex loss

By TMR

Lotte Chemical Titan Holding Bhd’s net profit fell 28.6% year-on-year (YoY) to RM244.2 million, or earnings per share of 10.74 sen, in its first quarter ended March 31, 2018 (1Q18), due to margin squeeze and foreign-exchange (forex) loss.

It told Bursa Malaysia on Monday that the feedstock price increased from the end of 2017, while the product price lagged in its pickup.

“Forex loss of RM44.6 million was incurred as a result of the revaluation of the company’s US-dollar initial public offering funds, held for an Indonesia project capital injection as a result of the strengthening of the ringgit against the US dollar in 1Q18,” it said in the statement on Monday.

It added that the loss was partially offset by forex gain of RM34.9 million from its operations in 1Q18.

Revenue for the period rose 15.8% YoY to RM2.2 billion due to the rise in sales volume.

“Average plant utilisation was 83% compared to 58% in the corresponding quarter.

“For 1Q17, this was mainly due to statutory routine plant turnaround for the Naphtha Cracker 2 plant pipeline in Pasir Gudang, Johor,” it said.