August 21, 2020 (MLN): Lotte Chemical Pakistan (LOTCHEM) has posted a colossal decline of 96% YoY in profitability to Rs 113 million (EPS: Rs 0.07) for the half-year ended June 30, 2020 against net profits of Rs 3 billion of the corresponding period last year.
This massive decrease in earnings is the result of lower volumetric sales and a decline in international PTA margins.
According to the financial statement issued to PSX, the sales of the company came down by 46% YoY due to COVID-19 related lockdown. As a result of lower volumetric sales along with lower PTA margins, the company bore gross losses of Rs 209 million during 1HCY20.
However, as per the research note of Arif Habib Limited, the other income of the company surged by 45% YoY to Rs 620 million due to higher income from short term deposits.
The other highlight is the finance income of Rs 150 million against the finance cost of Rs 117 million during 1HCY19. Meanwhile, the tax expenses of the company plunged by 96% which provided a cushion to its net earnings.
Profit and Loss Account for the Half-year ended June 30, 2020 ('000 Rupees)
