Petrochemical companies continued seeing disappointing financial results in 2Q2023
The losses come as a consequence of a failing external environment and the market instability is expected to last due to slower economic growth
Lotte Chemical Titan
Lotte Chemical Titan Holding Bhd reported further net losses during the second quarter of the year. The losses come as a consequence of a failing external environment and the market instability is expected to last due to slower economic growth while new onstream capacities have applied downward pressure on petrochemical prices.
In the second quarter that ended on 30 June 2023, Lotte experienced a net loss of RM 313.5 million against RM 145.9 million reported from the previous year.
On a quarterly basis, revenue tumbled 34% to RM 1.86 billion compared to RM 2.8 billion a year ago while loss per share jumped to 13.76 cents from 6.41 cents previously.
In the first six months of 2023, Lotte obtained revenue of RM 3.8 billion, a reading lower than the previous year due to lower sales volume and selling prices while net loss stood at RM 559.3 million.
Dow Chemical
Dow Chemical reported another quarter of disappointing financial results as both sales volumes and revenue were eroded by slower macroeconomic activity.
The unaudited financial report showed Net sales fell 27% year-on-year to $11.4 billion in the second quarter of 2023. Sales volume tumbled 8% during the same period mainly due to a sharp decline in sales in the Europe, Middle East, Africa, and India (EMEAI) region.
Operating income before taxes (EBIT) stood at $885 million, slumping from $2.4 billion seen last year with declines in all operating segments caused by lower local prices.
SCG Chemicals
Thailand’s SCG Chemical (SCGC) is among a few petrochemical companies that managed to swing back into green in the second quarter of the year. SCGC recorded Sales Revenue of 48,755MB, up 4% from the first quarter of the year.
Tanawong Areeratchakul, CEO and President of SCG Chemicals Public Company Limited (SCGC), shared with the Bangkok Post, "SCGC's total sales have improved from the previous quarter, driven by increased sales volumes of polyolefins and favourable spreads of some chemical products. We are also making significant progress with the LSP petrochemical complex plant in Vietnam, currently undergoing testing in preparation for future commercial operations."
However, results for the first half of 2023 remained weak. Sales Revenue dipped 30% compared to the same period last year to 95,560 MB. Profit for the period plunged 71% year-on-year to 2,097 MB.