KUALA LUMPUR – Lotte Chemical Titan Holding Bhd’s net profit for the second quarter (Q2) ended June 30, 2021 surged to RM382.29 million compared with RM88.72 million recorded in the same quarter last year thanks to the improved margin spread resulting from higher average product selling price.
Revenue jumped 61% to RM2.54 billion from RM1.58 billion previously, mainly due to the increase in average product selling price following the supply disruption due to plant outages in the United States and Southeast Asia that has gradually normalised since early Q2 2021.
Its basic earnings per share soared to 16.81 sen versus 3.9 sen.
In a filing with Bursa Malaysia today, the producer of olefins and polyolefins said it is cautiously optimistic on the petrochemical market outlook with some balancing market factors weighing on the sector.
“Given the price correlation of our naphtha feedstock with crude oil, rising global crude oil price would be an area of concern should our product prices remain stable.
“There is some new additional capacity in the region expected to come online in the second half of the year which may have some downward pressure on the product average selling prices,” it said.
At lunch break, shares of Lotte Chemical rose 4 sen to RM2.91 with 4.76 million shares transacted. – Bernama, July 28, 2021
