PETALING JAYA: Stronger-than-expected polymer spread is likely to boost earnings of Lotte Chemical Titan Holding Bhd (LCT) for the second quarter (Q2) of financial year 2021 (FY21).
TA Research noted that spreads in Q2 averaged US$284 (RM1201.04) per tonne and while this was below the preceding quarter average of US$351 (RM1484.38) per tonne, there were “still robust, far exceeding FY20’s Q1 level of US$211 (RM892.32) per tonne”. “Hence, we believe this would boost LCT’s Q2 of FY21 profits,” it said in a company update on the stock.
For the first quarter ended March 31, 2021, the petrochemical producer saw its net profit grow multi-fold to RM440mil on the back of higher polymer prices amidst shortage in the United States and Europe.
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