LOTTE Chemical Titan Holdings Sdn Bhd’s net profit soared to RM1.06 billion in the financial year ended Dec 31, 2021 (FY21) from RM148.59 million previously, boosted by stronger sales volume and average product selling price.
The increase in average product selling price was supported by firmer feedstock cost and supply disruption resulting from plant outages in the US and South-East Asia along with the turnaround activities in the Middle East.
Meanwhile, revenue jumped to RM9.83 billion from RM6.9 billion, with overall plant utilisation increasing from 82% to 84%, it said in a filing to Bursa Malaysia yesterday.
Lotte Chemical Titan said the polyolefin products segment recorded an increase in revenue from RM5.72 billion in FY20 to RM7.9 billion in FY21.
Meanwhile, the olefins and derivative products segment saw revenue go up to RM1.93 billion in FY21 from RM1.18 billion in FY20.
As for the fourth quarter of FY21 (4QFY21), net profit stood higher at RM188.84 million from RM151.16 million, while revenue swelled to RM2.68 billion compared to RM1.92 billion previously, also driven by the increase in average product selling price and sales volume.
The olefins and derivative products segment posted an improvement in revenue from RM332.6 million in 4QFY20 to RM582 million in 4QFY21, attributed to the increase in average product selling price and sales volume.
The polyolefin products segment’s revenue expanded to RM2.1 billion in 4QFY21 from RM1.59 billion in 4QFY20.
In FY22, petrochemical products demand and feedstock prices are expected to move in tandem with overall global economic growth and crude oil prices respectively.
“We are cautiously optimistic on the petrochemical market outlook with some balancing market factors weighing on the sector.
“Given that our naphtha feedstock correlates with the crude oil outlook, the rising global crude oil price will notably be an area of concern,” it said.
The group also said it expects new additional domestic capacity to come online this year, which could potentially have downward pressure on product prices.
“On the other hand, stable demand with the easing of lockdown measures coupled with freight constraints and regional supply disruptions would lead to firm footing for our overall product prices.
“Notwithstanding the external circumstances, the company will continue to maintain its strong financial resilience and optimise its operations to ride through the volatile business environment,” Lotte Chemical Titan noted.