Lotte Chemical Pakistan (LOTCHEM) is slated to reveal its financial results for the 1QCY24 on 18th Apr’24. We expect that the company will report earnings of PKR 309mn (EPS: PKR 0.20) for 1QCY24, registering a hefty decline of 74% YoY. During 1QCY24, we foresee sales to experience a 33% YoY jump, due to higher volumetric sales as the plant remained operational throughout the quarter while a 26-day plant shutdown was observed in 4Q. In addition, the company’s gross margins are expected to decline by 1,586 bps to 4.2% in 1QCY24. This decline in gross margins is primarily due to 18% YoY decline in international PTA margins and an increase in gas prices. Furthermore, the finance cost is expected to plummet by 81% YoY to clock in at PKR 141mn on account of the absence of exchange loss in 1QCY24.

Courtesy – AHL Research