Malaysia-based Lotte Chemical Titan Holding Bhd. (LCT) reported an operating profit of MYR138.2 million ($33.2 million) for the third quarter of 2020, surging by 60% year-on-year (YoY) from the corresponding quarter last year. The company attributed the increase to better margins of its polymer products due to improved demand. The wider margins offset lower sales revenue, which fell 11.82% YoY to MYR1.94 billion ($465.6 million). EBITDA rose to MYR279 million ($66.9 million) from MYR244 million a year earlier.
Margins widened during the third quarter as costs for feedstock naphtha turned lower following the collapse of Brent crude oil price in April, the company said. Plant utilization increased following the completion of major maintenance. However, the company’s third-quarter net profit fell 13.7% YoY to MYR78.77 million ($18.9 million) due to changing currency value and a higher share of losses from its US operations.
According to the group’s president and CEO Lee Dong Woo, LCT would move forward to become a top-tier petrochemical company in Southeast Asia by 2024. He also reveals plans to navigate the current challenging economic environment, including optimizing plant operations, strengthening business competitiveness, and enhancing business sustainability.
