KUALA LUMPUR (Feb 6): Lotte Chemical Titan Holding Bhd’s (KL:LCTITAN) net loss widened to RM510.07 million for the fourth quarter ended Dec 31, 2024 (4QFY2024), from RM186.48 million a year earlier. This marks the group’s largest quarterly net loss since its listing in 2017.

The company attributed the higher loss to impairment of RM940.23 million on property, plant, equipment, and right-of-use assets.

Lotte Chemical Titan’s revenue for the quarter fell 3.37% to RM1.79 billion from RM1.86 billion. Its loss before tax widened to RM645.1 million from RM255.2 million, its bourse filing showed on Thursday.

However, excluding impairment losses, the group’s loss before tax was lower at RM174.83 million, primarily due to a reduced share of losses from an associate company following the resumption of its operations after a maintenance shutdown in the third quarter of 2024, a one-off payment due to the termination of a pipeline lease agreement with a related party, and a reversal of inventory write-down to net realisable value.

No dividend was declared for the quarter under review. The last time the group declared a special dividend was in FY2022 at 13.98 sen per share.

The weak 4Q performance dragged Lotte Chemical Titan’s full-year net loss deeper to RM1.18 billion in FY2024 against RM780.29 million in FY2023. Revenue also declined 2.76% to RM7.44 billion from RM7.65 billion.

Looking ahead, the group foresees continued volatility in the global business environment in the near term, led by geopolitical factors, including the Russia-Ukraine War, tension in the Middle East, and the impact of US President Trump's policies which may influence trade policies and global relations. It noted that these are expected to contribute to volatility in crude oil prices.

Additionally, weak economic conditions and an oversupply of petrochemical products in China continue to affect supply-demand dynamics.

“Challenges persist due to ongoing uncertainties in the demand and supply of products and supply chain for petrochemicals, driven by fluctuations in oil prices and average selling prices. The macroeconomic environment is expected to remain volatile in the near term. The valuation adjustment in accordance with Malaysian Financial Reporting Standards (MFRS) does not change the strategic focus of the group,” said Lotte Chemical Titan president and chief executive officer Jang Seon Pyo.

“As external pressures on the industry remain significant, our key priorities for the upcoming year are to sustain operational stability and implement efficient cost management,” he added.

Shares of Lotte Chemical Titan closed up half a sen or 0.88% at 57.5 sen on Thursday, giving the group a market capitalisation of RM1.3 billion.