KUALA LUMPUR (July 31): Lotte Chemical Titan Holding Bhd (KL:LCTITAN) reported its ninth consecutive quarterly loss with a narrower net loss of RM248.9 million for the second quarter ended June 30, 2024 (2QFY2024), compared to RM313.5 million in 2QFY2023.

The lower losses came as it recorded lower gross negative margin amid lower sales volume, and lower write down of inventories to their net realisable value, the olefins and polyolefins producer said in a bourse filing on Wednesday.

Its loss per share dropped to 10.93 sen from 13.76 sen. Revenue dropped 4.3% to RM1.78 billion from RM1.86 billion, mainly due to scheduled statutory maintenance that resulted in lower sales volume. The impact of that was partially mitigated by the appreciation of the US dollar against the ringgit, and higher average selling price.

The group would have reduced its losses even more if not for an increase of share of losses from an associate, Lotte Chemical USA Corp, according to LC Titan. It did not declare any dividend for the quarter. 

It said loss before interest, taxes, depreciation and amortization (LBITDA) for 2QFY2024 dropped 41% to RM155.6 million from RM261.8 million in 2QFY2023.

For the first six months ended June 30, 2024 (6MFY2024), the group's net loss shrank to RM426.9 million from RM538.2 million in 6MFY2023, as revenue dipped 3.5% to RM3.7 billion from RM3.83 billion.

In a separate statement, LC Titan chief executive officer Park Hyun Chul said the group's sales volume dropped year-on-year during the quarter, while the utilisation rate of its plants fell to 47% from 66%.

This was due to its implementation of a comprehensive safety plan for the plant statutory turnaround to enhance plant performance and maintain sound operational efficiency at both its Pasir Gudang and Tanjung Langsat plants.

"On the production front, the group has now completed its statutory turnaround and is expected to optimise its utilisation rate in the coming period. LCT will remain focused on continued efforts to optimise production output and effective cash flow management to align with our business strategy in sustaining its market position.

"Additionally, the construction of the LOTTE Chemical Indonesia New Ethylene (LINE) project located in Merak, Indonesia is progressing on schedule and the expansion project is expected to be completed by 2025. Upon completion, the LINE project will expand the Group’s total production capacity by 65%,” Park said.

LC Titan shares lost three sen or 2.73% to RM1.07 at Wednesday's market close, after over one million shares changed hands, giving it a market capitalisation of RM2.47 billion.