In a filing with Bursa Malaysia, the group said the reduced net loss was primarily due to lower sales volume and a decrease in the share of losses from associate company Lotte Chemical USA Corporation.
Revenue was lower by 2.7% to RM1.92 billion against RM1.97 billion in Q1 FY2023, mainly attributed to continued challenges arising from lower sales volume.
Segment-wise, LCTitan said revenue for polyolefin products contracted to RM1.51 billion in Q1 FY2024 versus RM1.61 billion in the corresponding quarter previously, mainly due to lower sales volume from products with squeeze margin and weakening in average selling price.
It said revenue for olefins and derivative products grew to RM405.3 million in Q1 FY2024 against RM358.8 million previously, but the revenue increase was partially offset by lower sales volume.
“Looking ahead, LCTitan remains cautious in managing the business due to uncertainties arising from oil price volatility, petrochemical glut, and a slowdown in economic activity due to inflationary pressures and escalating geopolitical tensions.
“Despite the challenges, LCTitan is determined to advance its operational performance and further solidify its market position,” said its president and CEO Park Hyun Chul.
With a utilisation rate of 65%, in line with previous guidance, he said LCTitan would focus on optimising production outputs, implementing efficient cost and cash flow management practices, and positioning the group for long-term sustainability.
Park also said the group was committed to a plant turnaround in the coming period, focusing on efficiency improvements, enhancing plant performance, and significantly improving plant safety.
“Concurrently, the construction of the Lotte Chemical Indonesia New Ethylene (Line) project is progressing on schedule and is expected to be completed by 2025.
“This strategic expansion will increase the group’s total production capacity by 65%,” he said.
LCTitan, a subsidiary of Lotte Chemical Corporation under the Lotte Group, is Malaysia’s first standalone polyolefin producer and one of the largest integrated olefin and polyolefin producers in Malaysia and Southeast Asia.
At the close of trading, LCTitan’s share price was unchanged at RM1.10, giving the company a market capitalisation of RM2.54 billion.