KUALA LUMPUR (May 23): Lotte Chemical Titan Holding Bhd (KL:LCTITAN) signed a three-year contract to purchase up to 400 kilotonnes (KT) of naphtha annually from Aramco Trading Singapore Pte Ltd, a wholly owned subsidiary of Saudi Aramco.

The loss-making olefin and polyolefin producer said the agreement, signed by its wholly owned subsidiary Lotte Chemical Titan (M) Sdn Bhd, will be effective from July 2025 to June 2028, according to a filing with Bursa Malaysia.

The pricing is based on market pricing, with the estimated annual volume ranging between 300KT and 400KT, it added.

Aramco Trading Singapore is a key feedstock supplier of naphtha to Lotte Chemical Titan and has been its long-term partner.

The sales contract will not affect Lotte Chemical Titan’s share capital or shareholding structure, the company said.

The group reported its eighth consecutive quarterly loss, although losses narrowed year-on-year on better margins and contributions from a US associate.

For the first quarter ended March 31, 2025 (1QFY2025), LC Titan incurred a net loss of RM125.67 million, versus a net loss of RM178.03 million in the same quarter last year, even as revenue dropped 22.3% to RM1.49 billion from RM1.92 billion on lower sales volume and average selling prices.

The group attributed the improved results to higher product spreads, lower depreciation, and share of profit from its 40%-owned Lotte Chemical USA.

Saudi Aramco is an integrated energy and chemicals company with operations across both upstream and downstream segments. Its upstream activities include the production of crude oil, condensate, natural gas, and natural gas liquids, while its downstream operations cover refining and chemicals, base oils and lubricants, retail, distribution, supply and trading, as well as power generation.

During the midday break on Friday, shares of LC Titan closed half a sen or 0.9% lower at 54 sen, valuing the group at RM1.25 billion. Year to date, the counter has declined by 15.62%.