KUALA LUMPUR (July 30): Lotte Chemical Titan Holdings Bhd saw its net profit for the second quarter ended June 30,2020 (2QFY20) decline by 15.38% year-on-year (y-o-y) on lower revenue, weaker average selling prices (ASPs) and poorer demand.

In a bourse filing, the group said that its latest quarter saw its net profit decline by 15.38% y-o-y to RM88.72 million, from RM104.85 million for 2QFY19.

Quarterly revenue was down by 25.9% y-o-y to RM1.58 billion, from RM2.13 billion in the corresponding quarter last year.

In a breakdown of its results, the group said the lower quarterly revenue for 2QFY20 was mainly due to weaker ASPs.

It noted that demand during the quarter was weak following the implementation of lockdowns worldwide to contain the spread of Covid-19.

Following the gradual easing of economic activity in May, Lotte Chemical Titan noted that its sales volume increase by 1.4% from 2QFY19.

Meanwhile, its net profit was impacted by lower other income, as there was no one-off insurance claim in 2QFY20.

It also saw higher foreign exchange losses, a decrease in finance income following lower interest rates, initial public offering fund balance and increase in the share of losses from associate companies.

Average plant utilisation stood at 86% in 2QFY20, from 89% in the corresponding quarter last year.

For the cumulative first half ended Dec 31, 2020 (1HFY20), the group posted a net loss of RM81.34 million, compared with a net profit of RM160.78 million posted for 1HFY19.

Half-year revenue was down to RM3.04 billion, from RM4.3 billion in 1HFY19.

In a separate statement, president cum chief executive officer Dr Lee Dong Woo said that manufacturing and business activities in major economies are starting up again and are expected to normalise and improve in 2HFY20.

"Moving forward, our company will continue to focus on operational and financial performance optimisation initiatives.

"We will also be undertaking a strategic review on the timing and progress for our Indonesia LINE project in light of the pandemic impact on the global economy.

"Notwithstanding the external environment, the company will continue to maintain its strong financial resilience with its net cash position of more than RM3.8 billion, as well as optimise its operations to ride through the highly volatile business environment," he said.

As of noon market close, shares in Lotte Chemical Titan were up 2.69% or six sen higher at RM2.29, valuing it at some RM5.29 billion. It saw 6.82 million shares done.