Malaysia’s Lotte Chemical Titan narrows Q1 loss on better margins

Lotte Chemical Titan reported a reduced net loss of RM125.67 million ($29.6 million) for the first quarter of 2025, compared to RM178.03 million ($42 million) a year earlier. The improvement was driven by better product margins, lower depreciation expenses, and profit contributions from its 40%-owned associate, Lotte Chemical USA.

The company also reported a smaller operational loss of RM127.95 million ($30 million), marking a 32% year-on-year improvement. However, quarterly revenue declined by 22.26% year-on-year to RM1.49 billion ($351 million), primarily due to lower sales volumes and weaker average selling prices. Plant utilization also dropped to 46%, down from 65%.

Management warned of ongoing challenges stemming from volatile oil-linked feedstock prices, weak global petrochemical demand, geopolitical risks, and the potential impact of future US trade tariffs. However, the group reaffirmed that its Lotte Chemical Indonesia New Ethylene (LINE) project in Merak remains on schedule for completion this year.