by BERNAMA / pic by MUHD AMIN NAHARUL
LOTTE Chemical Titan Holding Bhd’s net profit dropped to RM78.77 million for the third quarter(Q3) ended Sept 30, 2020 from RM91.30 million in the same quarter last year.
Revenue eased 10.4 per cent to RM1.94 billion from RM2.17 billion previously due to lower average product selling price, it said in a filing with Bursa Malaysia today.
Lotte Chemical said the COVID-19 pandemic has affected regional economy, resulting in poor business sentiment and weakened demand.
It said however, regional businesses have displayed signs of recovery with a recent improvement seen in the average product selling price and sales volume.
“Apart from the virus outbreak, reduction in production quantity resulting from the major statutory plant turnaround conducted in the first half of 2020 has also caused the decrease in sales volume,” it said.
Operationally, Lotte Chemical said it remained solid and resilient despite the hostile external business environment plagued by post-pandemic economic slowdown.
President and chief executive officer Dr Lee Dong Woo (picture) said in the quarter under review, the company generated a positive operating cash flow (OCF) of RM292 million, bringing the total OCF generated to RM804 million to date this year.
“Additionally, the company’s position is further complemented by its healthy balance sheet with net cash position of close to RM4 billion as at Sept 30, 2020.
“Year-to-date, our business is now back in the black and had since observed operational performance turnaround with continuously improving gross profit margin trends,” he said.
Notwithstanding the current challenges facing the industry, the company reiterates its vision of becoming a top-tier petrochemical company in Southeast Asia by 2024.
On this front, it will leverage further growth opportunities, as well as remains focused on the established business strategies to ensure long-term business sustainability.
“Our long-term strategy to ride through these challenging periods will include optimising plant operations to increase our production output, improving our business competitiveness and enhancing our business sustainability and governance,” Lee said.