April 18, 2019 (MLN): Lotte Chemical Pakistan Limited (LOTCHEM) is scheduled to announce its financial results for 1QCY19 on 19^th April 2019. In keeping with the projections put forth by Arif Habib Limited, the company is likely to post Profits after Tax of Rs. 643 million (EPS: Rs. 0.42), up by 81% YoY in 1QCY19 compared to Rs. 355 million (EPS: Rs. 0.23) in 1QCY18.

The gross sales of the company during the period under review are expected to clock-in at Rs. 15.1 billion, up by 22% YoY, despite expected drop in volumes by 10% owing to higher PTA rates (9% improvement YoY) as well as weaker PKR parity against the USD (1-year devaluation of 22%), a research report by BMA Capital stated.

However, gross margins of the company are likely to decline by 142 bps YoY to 7.6%, due to 8% YoY reduction in international PTA margins (average USD 130/ton).

On QoQ basis, earnings are expected to decrease by 37% owing to 23% QoQ decline in international PTA margins.

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