Petronas Chemicals nets RM1.38b
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