LOTCHEM sees a 61% drop in annual earnings

February 26, 2021 (MLN): Lotte Chemical Pakistan (LOTCHEM) has earned Rs. 2.12 billion (EPS: 1.4) during the year ended December 31, 2020, i.e. nearly 61% lower as compared to the earnings of same period last year.

The company also announced a final cash dividend of Rs. 0.75 per share for the year i.e. 75%.

The drop in earnings stemmed from a 35.6% decline in revenue owing to a decline in the price of PTA. On the other hand, the cost of sales declined by 31% due to PKR depreciation and removal of GIDC which resulted in lower gas prices.

The non-core income rose by 15.7% on account of higher cash and short-term investments.

Finance cost of the company fell by nearly 75% owing to a 6.25% drop in interest rates.

Profit and Loss Account for the year ended December 31, 2020 ('000 Rupees)

 

Dec-20

Dec-19

% Change

Revenue from contract with customers-net

38,964,851

60,539,754

-35.64%

Cost of Sales

(36,322,627)

(52,509,365)

-30.83%

Gross Profit

2,642,224

8,030,389

-67.10%

Distribution and Selling Expenses

(107,275)

(103,581)

3.57%

Administrative Expenses

(434,288)

(422,635)

2.76%

Other Expenses

(373,397)

(642,814)

-41.91%

Other Income

1,422,069

1,228,637

15.74%

Finance Cost

(150,248)

(567,074)

-73.50%

Profit/(loss) before Taxation

2,999,085

7,522,922

-60.13%

Taxation

(873,980)

(2,162,552)

-59.59%

Profit after Taxation

2,125,105

5,360,370

-60.36%

Earnings per share – Basic and Diluted (Rs.)

1.40

3.54

-60.45%

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Posted on: 2021-02-26T15:14:00+05:00

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