Lotte Chemical Titan Holdings Bhd observed its Q2 net profit ending in June 30 declining by 15.38% in year-on-year comparison on lower revenue, poorer demand and weaker average selling prices. While in bourse filling, its latest quarter net profit fell by 15.38% year-on-year from RM104.85 in Q2 2019 to current RM88.72 million. The company’s quarterly revenue was also dropped by 25.9% in year-on-year comparison from RM2.13 billion Q2 2019 to current RM1.58 billion. The official release said that lower revenue for 2QFY20 mainly reasoned in weaker average selling prices, as demand also weakened during the global implementation of lockdowns to curb the pandemic.
After the global economic activity gradually rekindled in May, the company’s sales volume hike by 1.4% from 2QFY19. In the meantime, the net profit was influenced by lower other income and there was no one-off claim of insurance in 2QFY20. Higher foreign exchange losses was also observed alongside a lower interest rates followed by decrease in finance income, initial public offerings balance fund and share of losses from associate companies increased. Average plant utilisation in 2QFY20 is at 86%, slightly lower than a year-on-year comparison in 2QFY19 with 89%.
As for the cumulative first half 1HFY20 ended on Dec 31, the group projected a net loss of RM81.34 million, way below the 1HFY19 with a profit of RM160.78 million. Meanwhile, the half-year revenue was slid down from M4.3 billion in 1HFY19 to RM3.04 billion.
President and CEO Dr Lee Dong Woo said that business activities and manufacturing in major economies are restarting and are supposed to be normalised by 2HFY20, and the company will continue its focus in performance optimisation initiatives in operational and financial side while simultaneously undertaking a review according our progress and timing of Indonesia LINE project, taking the pandemic impact to global economy into consideration. As for now, the company would still maintain its strong financial resilience, noting the cash position above RM3.8 billion, while optimizing operations in these volatile circumstances.
In last week's market closing, July 30, Lotte Chemical Titan shares up by 2.69% or up six sen to RM2.29, valuing RM5.29 billion in total, and booked a done share as much as 6.82 million.
