The Lotte Chemical Pakistan Limited is expected to post a profit after tax of PKR 1,350mn (EPS: PKR 0.89), up by 24x YoY during 2QCY21 compared to PKR 55mn (EPS: PKR 0.04) during 2QCY20. This will take the 1HCY21 earnings to PKR 2,989mn (EPS: PKR 1.97).

During 2QCY21, sales are expected to increase by 232% YoY due to higher production along with 64% YoY rise in PTA prices. Gross margins are expected to settle at 13.4% compared to -2.2% during same period last year. The rise in gross margins is expected due to a 17% YoY increase in PTA margins to USD 127/ton compared with USD 108/ton during 2QCY20.

Moreover, other income is expected to increase by 20% YoY to PKR 332mn during 2QCY21 due to higher levels of short term investments.

Lotte Chemical Pakistan Limited manufactures and sells purified terephthalic acid for polyester and polyethylene terephthalate industries in Pakistan. … The company was formerly known as Lotte Pakistan PTA Limited and changed its name to Lotte Chemical Pakistan Limited in 2013

Courtesy – AHL Research