Petronas Chemicals’ Q3 earnings up 2.5% on higher prices, strong US dollar

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PETALING JAYA: Petronas Chemicals Group Bhd (PetChem) reported a 2.5% rise in net profit to RM913 million for the third quarter ended September 30, 2017 against RM891 million in the previous corresponding period, driven by higher prices and sales volume as well as the strengthening of US dollar.

Revenue was up 12.6% from RM3.56 billion to RM4.01 billion.

The group said in a filing with the stock exchange that its plant utilisation for the quarter was lower at 86% against 100% in the corresponding quarter, mainly due to statutory turnaround activities undertaken during the current quarter.

Despite lower plant utilisation, it noted that production and sales volumes increased on the back of contribution from the Sabah Ammonia and Urea (SAMUR) plant, which commenced commercial operation in May 2017.

“Overall average product prices improved in tandem with higher crude oil price.”

Looking ahead, PetChem said its results are expected to be primarily influenced by global economic conditions, utilisation rate of production facilities and petrochemical products prices, which have a high correlation to crude oil prices, particularly for the olefins and derivatives segment.

“The utilisation of our production facilities is dependent on plant maintenance activities and sufficient availability of feedstock as well as utilities supply. The group will continue with its operational excellence programme and supplier relationship management to sustain plant utilisation level at above industry benchmark,” it explained.

PetChem’s nine-month net profit jumped 63.1% from RM1.95 billion to RM3.17 billion. Revenue came in at RM12.67 billion, 27.8% higher than the RM9.91 billion made a year ago.

At 12.30pm, its share price fell 10 sen to RM7.37 on some 19.49 million shares done.


Read the original story on: TheSunDaily.My