LOTTE Chemical said at a third-quarter earnings conference call on the 12th that as large-scale investment in Indonesia Chemical (LCI) wraps up, the burden of capital spending will ease and cash flow will stabilize.
A company official said, "LCI, which broke ground in 2021, was completed in May this year and began commercial production in October. Given the slump in the petrochemical market and initial expense, it is hard to expect results right away, but as the operating efficiency of the new facilities has improved compared with the past, profitability will also gradually recover when the market rebounds."
On the Indonesian market, the official said, "Supply is tight, but growth potential is high. We are continuously reviewing various options, including attracting investment into Southeast Asia commodity petrochemical asset."
On a question about the size of noncore asset sales and future investment plans, the official said, "Among noncore asset sales, the sale of LCPL has been finalized, and roughly $50 million in cash is expected to flow in this week."
The official added, "Future capital expenditures (CAPEX) will be executed within earnings before interest, taxes, depreciation and amortization (EBITDA). Excluding essential routine investments in safety and environment, all new investments are being reexamined based on profitability, and we will invest only on the premise of securing profitability."