KARACHI: Lotte Chemical Pakistan Limited reported a sharp improvement in its financial performance for the six months ended June 30, 2026, driven by stronger margins, higher product prices, efficient inventory management, and a significant one-time gain, despite continued challenges in the domestic polyester industry.
The company posted a profit after tax of Rs4.31 billion during the first half of 2026, compared with Rs741.8 million in the corresponding period last year. Earnings per share (EPS) climbed to Rs2.85, up from Rs0.49 a year earlier. Revenue increased to Rs44.71 billion, compared with Rs40.18 billion in the same period of 2025, while gross profit surged to Rs5.63 billion from Rs1.78 billion.
For the second quarter alone, the company earned Rs2.84 billion, compared with Rs79.9 million in the corresponding quarter last year. Quarterly EPS improved significantly to Rs1.87, up from Rs0.05.
Management said the quarter was shaped by volatile crude oil and paraxylene (PX) prices amid geopolitical tensions in the Middle East. Although feedstock costs remained elevated, disciplined operations and inventory management helped improve profitability. However, domestic demand remained subdued as Pakistan’s textile sector continued to struggle with weak consumption and the availability of cheaper imported products.
Domestic sales volume during the second quarter stood at 80,836 tonnes, down 10% from the same period last year, while production declined 27% to 65,766 tonnes as the company adjusted output in line with market demand.
A key milestone during the reporting period was the successful commissioning of the company’s 6.5-megawatt captive solar power plant and Battery Energy Storage System (BESS). According to the company, the project will reduce dependence on expensive grid electricity, lower operating costs, improve long-term profitability, and support its sustainability objectives through reduced carbon emissions.
The company also benefited from a Rs2.82 billion gain related to the settlement of the Sindh Infrastructure Development Cess (SIDC), which significantly boosted other income during the quarter.
Following the reporting period, the board approved an interim cash dividend of Rs1.50 per share for the year ending December 31, 2026, reflecting confidence in the company’s improved financial position.
Looking ahead, Lotte Chemical expects crude oil and PX prices to remain influenced by geopolitical developments and global supply-demand dynamics. The company believes the recently implemented anti-dumping duties on Chinese PTA imports, along with its ongoing energy efficiency initiatives, should strengthen the competitiveness of locally produced PTA. However, management cautioned that weak downstream textile demand, elevated energy costs, and continued inflows of cheaper imports are likely to remain key challenges in the near term.
