Karachi: Lotte Chemical Pakistan Limited has released its financial results for the second quarter ending June 30, 2025, highlighting a challenging period marked by a significant reduction in production and revenue. The company reported a production volume of 90,626 tonnes, representing a 28% decline from the same quarter last year, as operations were suspended from March 28 to April 17 to manage inventory levels efficiently.
The company’s financial performance in the latest quarter indicates a 42% decrease in revenue compared to the corresponding period of the previous year, primarily due to lower sales volume. Higher energy costs exacerbated the situation, leading to a gross profit of Rs 445 million, a stark contrast to the Rs 2,300 million gross profit recorded in the same quarter last year.
Distribution and selling expenses saw a 14% increase, while administrative and general expenses rose by 15%, both attributed to the prevailing high inflation. The taxation charge for the quarter accounted for statutory income tax and super tax, adjusted by movements in deferred tax.
Earnings per share stood at Rs 0.05, a notable decrease from Rs 0.84 per share reported in the second quarter of 2024. The domestic polyester industry, a key sector for Lotte Chemical, is expected to face a slowdown in operations as seasonal demand from textile and PET segments is anticipated to decline.
According to information available from the Pakistan Stock Exchange (PSX), Lotte Chemical Pakistan’s financial figures reflect the broader market challenges posed by volatile crude oil prices, geopolitical tensions in the Middle East, and economic uncertainties in major global economies. The anticipated increase in global supply from the rollback of OPEC+ production cuts, coupled with weak manufacturing data and concerns over Chinese growth, further compounds the economic outlook.
The company’s financial position as of June 30, 2025, shows total assets amounting to Rs 42,040.94 million, with equity at Rs 22,413.62 million. The liabilities were recorded at Rs 19,627.33 million, including both current and non-current obligations.
Despite the current challenges, Lotte Chemical remains focused on navigating the volatile market conditions, with expectations of crude oil and paraxylene prices remaining uncertain due to geopolitical and economic factors. The domestic polyester industry continues to face hurdles as producers grapple with elevated energy costs and the implications of new regulatory requirements.
Looking forward, the company acknowledges the potential for continued volatility in crude oil prices and paraxylene markets, influenced by geopolitical tensions and macroeconomic uncertainties. Nonetheless, Lotte Chemical is committed to adapting its operations to these evolving market dynamics. The company is optimistic that regulatory reforms pursued by the government may stimulate domestic industrial output, despite the prevailing challenges.