KUALA LUMPUR (Nov 3): Lotte Chemical Titan Holding Bhd (KL:LCTITAN) has reported a smaller third quarter net loss, supported by stronger sales, lower depreciation charges from its Malaysian operations, and a reduced share of losses from associate Lotte Chemical USA Corp.
The net loss for the third quarter ended Sept 30, 2025 narrowed to RM197.86 million from RM1.69 billion a year earlier, the olefin and polyolefin producer said in a bourse filing on Monday.
Quarterly revenue rose 26% year-on-year to RM2.45 billion from RM1.95 billion, driven by increased supply to the Lotte Chemical Indonesia New Ethylene (LINE) project in Merak, Indonesia, which commenced commercial operations on Oct 15.
The LINE project is 51% owned by Lotte Chemical Titan, 24% by its parent Lotte Chemical Corporation, while the remaining stake is held by other Lotte Group affiliates.
Average plant utilisation, however, declined to 50% from 58% a year earlier.
For the cumulative first nine months of 2025, Lotte Chemical Titan's net loss narrowed to RM970.37 million from RM1.82 billion in 2024, aided by margin improvements in the polymer segment, lower depreciation, and reduced losses from Lotte Chemical USA Corp.
Nine-month revenue fell 5% to RM5.37 billion, impacted by lower sales volume and average selling prices from Malaysian operations. This was partially cushioned by contributions from the LINE project.
Looking ahead, Lotte Chemical Titan president and chief executive officer Jang Seon Pyo warned of continued global volatility, citing geopolitical tensions and shifting trade policies — including US reciprocal tariffs — as key risks to the petrochemical sector.
“Regionally, product oversupply and subdued downstream demand are expected to persist, keeping average selling prices and margins under pressure,” he said.
“Despite these headwinds, we remain committed to maintaining our position in key regional markets, especially Malaysia, Indonesia, and Southeast Asia. With measured outlooks on regional GDP growth and cautious operating rate projections, we will continue to navigate the current cycle with prudence.”
Shares in Lotte Chemical Titan ended 1.5 sen or 2.7% lower at 53.5 sen on Monday, valuing the group at RM1.24 billion.