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Lotte Chemical Titan Holding Bhd posted a narrower net loss for the third quarter ended Sept 30, 2025, supported by stronger revenue, lower depreciation in Malaysia, and reduced losses from its US associate, Lotte Chemical USA Corp.

The olefin and polyolefin producer reported a net loss of MYR 197.9 million, sharply lower than MYR 1.69 billion a year earlier. Quarterly revenue rose 26% year-on-year to MYR 2.45 billion, driven by increased supply to the Lotte Chemical Indonesia New Ethylene (LINE) project in Merak, which commenced commercial operations on 15 October.

Lotte Chemical Titan holds a 51% stake in the LINE project, alongside 24% owned by parent Lotte Chemical Corp, with the remainder held by other Lotte Group affiliates. Despite the revenue uplift, average plant utilisation slipped to 50%, down from 58% a year earlier.

For the first nine months of 2025, cumulative net loss narrowed to MYR 970.4 million from MYR 1.82 billion in the prior-year period, aided by improved polymer margins, lower depreciation, and reduced associate losses. Nine-month revenue declined 5% to MYR 5.37 billion, reflecting lower sales volumes and softer selling prices in Malaysia, partially offset by initial contributions from the new Indonesian plant.

The company cautioned that global market volatility remains elevated amid geopolitical tensions and evolving trade policies, including US reciprocal tariffs. Persistent regional oversupply and muted downstream demand are expected to keep selling prices and margins under pressure. Still, Lotte Chemical Titan said it aims to maintain its position in key Southeast Asian markets through a prudent and disciplined approach.

Shares in Lotte Chemical Titan fell 1.5 sen, or 2.7%, to close at 53.5 sen on Monday, valuing the group at MYR 1.24 billion.

Written: Farid Muzaffar