KUALA LUMPUR (May 7): Lotte Chemical Titan Holding Bhd (KL:LCTITAN) saw its first-quarter net loss narrow slightly against last year’s corresponding quarter, supported by improved margins in its olefins and derivatives segment, coupled with higher reversal of inventory write-downs to net realisable value.

Net loss for the three months ended March 31, 2026 (1QFY2026) stood at RM122.7 million, compared with RM125.7 million a year earlier, the olefins and polyolefins producer said in a Bursa Malaysia filing on Thursday.

Quarterly revenue jumped 70% year-on-year to RM2.53 billion from RM1.49 billion, driven by stronger contributions from the Lotte Chemical Indonesia New Ethylene (LINE) project in Merak, Indonesia, which commenced commercial operations in October last year.

The increase was partially offset by the weakening US dollar against the ringgit and lower average product prices.

Average plant utilisation rose to 61% from 46% in 1QFY2025, supported by production contributions from the LINE project.

The LINE project is 51%-owned by Lotte Chemical Titan, 24% by its parent Lotte Chemical Corp, while the remaining stake is held by other Lotte Group affiliates.

Looking ahead, Lotte Chemical Titan’s president and chief executive officer Jang Seon Pyo said geopolitical tensions in the Middle East, particularly the Iran war, continue to affect supply-demand dynamics in the petrochemical industry, keeping the global business environment volatile and uncertain.

“We will continue to closely monitor geopolitical developments and adapt our operations to meet business objectives and stakeholders’ expectations,” he said.

He added that the group remains committed to maintaining its presence in key regional markets, especially Malaysia, Indonesia and the wider Southeast Asian region.

“With measured outlooks on regional GDP growth and cautious operating rate projections, we will continue to navigate the current cycle with prudence,” he said.

Shares in Lotte Chemical Titan fell 1.5 sen or 3.8% to 38 sen at Thursday’s close, valuing the group at RM878.7 million.