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Lotte Chemical Narrows Q3 Losses, Sells Pakistan PTA Unit in Portfolio Overhaul

The company is shifting toward higher-value materials to bolster profitability after offloading a non-core asset.

Overview

  • Lotte Chemical reported a third-quarter net loss of 163.6 billion won, down from 513.8 billion won a year earlier.
  • Operating losses narrowed to 132.6 billion won as sales fell 5.8% to 4.78 trillion won from 5.08 trillion won.
  • The company sold its entire 75.01% stake in Lotte Chemical Pakistan to PTA Global Holdings for 98 billion won.
  • PTA Global Holdings is an SPV formed by Pakistan-based AsiaPak Investments and UAE-based Montage Commodities FZCO.
  • Lotte expects weak Q4 demand and says scheduled maintenance will weigh on high-end product sales, while it expands value-added lines and sells non-core assets.