KUALA LUMPUR: Lotte Chemical Titan Holding Bhd (LCT) reported a net loss of RM246.4 million for the third quarter of 2024 (3Q24), a significant increase from the RM55.5 million net loss in the same period last year.
Its revenue was slightly lower, down 0.7 per cent to RM1.94 billion from RM1.96 billion.
The company attributed the performance to factors such as inventory write-downs to their net realisable value, reduced sales volume, higher foreign exchange losses and increased losses from its associate Lotte Chemical USA Corporation.
For the nine months, Lotte Chemical saw a slight dip of 3.0 per cent in revenue from RM5.8 billion to RM5.6 billion.
"This decline was primarily due to lower sales volume, which was partially offset by the increase in the average product selling price and strengthening of US dollar against ringgit," it said.
Its net loss increased 13 per cent from RM615.4 million to RM695.8 million.
Lotte Chemical president and chief executive officer Park Hyun Chul said the company is making determined efforts to navigate the headwinds.
"While average selling prices have shown slight improvement compared to last year, the industry has been weighed down by volatile market conditions and an oversupply of petrochemical products from China, which have disrupted supply and demand dynamics.
"In response, the group remains attentive to various factors that could affect product pricing, including inflationary pressures, government sanctions, and changes in tax or tariffs," he added.
Park said Lotte Chemical's new ethylene project in Merak, Indonesia is nearing completion and expected to be fully completed by 2025.
"Upon completion, the project will expand the group's total production capacity by 65 per cent," he added.