Petronas Chem­i­cals nets RM1.38b

New Straits Times - - Business -

KUALA LUMPUR: Petronas Chem­i­cals Group yes­ter­day re­ported a dou­bling in quar­terly profit, helped by higher prices and sales vol­ume, but was cau­tious about re­cov­ery in the petro­chem­i­cals mar­ket as crude prices re­mained volatile.

The chem­i­cals man­u­fac­turer, a sub­sidiary of Petro­liam Na­sional Bhd (Petronas), re­ported a firstquar­ter profit of RM1.38 bil­lion, com­pared with RM671 mil­lion a year ear­lier.

Rev­enue rose 49 per cent to RM4.7 bil­lion from the year-ago quar­ter. Sales vol­ume in­creased 16 per cent, while prod­uct prices rose by an av­er­age of 22 per cent.

“Petro­chem­i­cal prod­uct prices have risen in tan­dem and de­mand has also shown some im­prove­ment,” said chief ex­exc­u­tive of­fi­cer Datuk Sazali Hamzah in a state­ment.

“De­spite the im­prove­ments that we have seen so far, crude oil and as such petro­chem­i­cal prices, are fore­cast to re­main volatile.”

Petronas Chem­i­cals makes olefins, poly­mers, fer­tilis­ers and methanol, among oth­ers. Petronas owns about 65 per cent of the chem­i­cals unit.

The com­pany said it an­tic­i­pates the olefins and de­riv­a­tives mar­ket to soften in the near term due to post re-stock­ing ac­tiv­i­ties amid sta­ble sup­ply and feed­stock prices. Methanol prices are also ex­pected to soften in the near term, it said.

The fer­tiliser mar­ket was likely to firm on the back of sea­sonal de­mand from South­east Asia and In­dia cou­pled with tight sup­ply from the Mid­dle East, said Petronas Chem­i­cals.

Plant util­i­sa­tion rate for the year will be slightly lower than last year due to higher statu­tory turn­arounds planned, it said. Reuters

A file pic­ture of Sabah Am­mo­nia Urea Plant. Petronas Chem­i­cals’s rev­enue rose 49 per cent to RM4.7 bil­lion from the year-ago quar­ter while sales vol­ume in­creased 16 per cent.

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