KUALA LUMPUR, Jan 30 — Lotte Chemical Titan Holding Bhd’s net profit eased to RM439.73 million in the financial year ended Dec 31, 2019 (FY2019), from RM783.33 million a year earlier.
Revenue fell to RM8.48 billion from RM9.24 billion recorded in FY2018 while earnings per share declined to 19.35 sen from 34.46 sen previously.
In a statement today, the company attributed its performance to a notable drop in the average selling price of its products in FY2019.
However, it said the effect was partially mitigated by the increase in sales volume, driven by higher production and continuous improvement in overall operating rates.
Meanwhile, it said the United States-China trade conflicts, which intensified in 2019, had diverted flows of cheaper polymer supplies into Asean countries, subsequently affecting regional polymer prices.
Operationally, the company’s overall plant operating rate increased to 88 per cent in FY2019 from 83 per cent level a year ago, which contributed to a higher production volume.
Moving forward, Lotte Chemical cautioned that the petrochemical industry would remain challenging due to persisting global market uncertainties arising from the geopolitical tensions in the Middle East as well as the softening global economic outlook.
“The petrochemical industry is undergoing a very challenging phase amidst global market uncertainties. However, in line with our vision and sustainable growth strategies, the company is actively pursuing further growth opportunities locally.
“Over the next five years, we will focus on key growth strategies to achieve our vision to be a top-tier petrochemical company in South-east Asia,” said president and chief executive officer Lee Dong Woo. — Bernama
