corporate result: Lotte Chemical’s profit rises 38% to Rs412m

Earnings get support from increase in revenues

KARACHI: Lotte Chemical Pakistan Limited’s profit increased 38% to Rs412.29 million in the year that ended on December 31, 2017, mainly due to higher revenues, according to a notice sent to the Pakistan Stock Exchange (PSX) on Friday.

The company had recorded a profit of Rs323.83 million in the preceding year.

Lotte is a manufacturer and supplier of purified terephthalic acid (PTA) which is a basic raw material for Pakistan’s textile and polyethylene terephthalate (PET) packaging industries.

PTA is utilised to manufacture polyester staple fibre, polyester filament yarn and p-Toluic acid.

Earnings per share of the company rose to Rs0.27 in 2017 compared to Rs0.21 in the previous year. Its board of directors recommended a final cash dividend of Rs0.20 per share.

Lotte Chemical’s stock price surged 4.24%, or Rs0.37, to Rs9.06 at the PSX. It emerged as the day’s volume leader with 49.31 million shares.

The company’s revenues rose 6.5% to Rs37.03 billion compared to Rs34.78 billion in 2016. Cost of sales went up 5% to Rs35.83 billion from Rs34.08 billion. Finance cost swelled to Rs52.39 million from Rs9.53 million. Other income increased to Rs248.61 million from Rs213.57 million.

Published in The Express Tribune, February 3^rd, 2018.

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