Picture: Website Lotte

Website: The Edge Malaysia

KUALA LUMPUR (May 23): Lotte Chemical Titan Holding Bhd (KL:LCTITAN) signed a three-year contract to purchase up to 400 kilotonnes (KT) of naphtha annually from Aramco Trading Singapore Pte Ltd, a wholly owned subsidiary of Saudi Aramco.

The loss-making olefin and polyolefin producer said the agreement, signed by its wholly owned subsidiary Lotte Chemical Titan (M) Sdn Bhd, will be effective from July 2025 to June 2028, according to a filing with Bursa Malaysia.

The pricing is based on market pricing, with the estimated annual volume ranging between 300KT and 400KT, it added.

Aramco Trading Singapore is a key feedstock supplier of naphtha to Lotte Chemical Titan and has been its long-term partner.

The sales contract will not affect Lotte Chemical Titan’s share capital or shareholding structure, the company said.

The group reported its eighth consecutive quarterly loss, although losses narrowed year-on-year on better margins and contributions from a US associate.

For the first quarter ended March 31, 2025 (1QFY2025), LC Titan incurred a net loss of RM125.67 million, versus a net loss of RM178.03 million in the same quarter last year, even as revenue dropped 22.3% to RM1.49 billion from RM1.92 billion on lower sales volume and average selling prices.