Im­prove­ment at­trib­uted to, among oth­ers, higher out­put vol­umes from Sabah Am­mo­nia Urea plant

New Straits Times - - Business -

PETRONAS Chem­i­cals Group Bhd’s (PCG) net profit dou­bled to RM964 mil­lion in the sec­ond quar­ter ended June 30 from RM462 mil­lion a year ago.

The com­pany at­trib­uted the im­prove­ment to the com­mence­ment of com­mer­cial op­er­a­tions at the Sabah Am­mo­nia Urea (Sa­mur) plant in May.

Group rev­enue rose 24 per cent to RM3.96 bil­lion, mainly due to higher sales vol­umes and prices as well as a stronger| US dol­lar.

For the six-month pe­riod, PCG’s net profit also dou­bled to RM2.26 bil­lion from RM1.05 bil­lion in the same pe­riod a year ago due to higher vol­umes and im­prov­ing prod­uct spreads.

Its rev­enue rose 36 per cent to RM8.65 bil­lion from RM6.35 bil­lion in the pre­vi­ous year’s cor­re­spond­ing pe­riod

PCG said the av­er­age prod­uct prices in its fer­tiliser and methanol seg­ment in­creased five per cent, con­trib­uted by the higher vol­umes from Sa­mur.

“While this con­tin­ued to be a chal­leng­ing pe­riod for the in­dus­try, we have de­liv­ered re­silient per­for­mance to sus­tain healthy mar­gins and re­turns, with earn­ings driven by the strong mo­men­tum of our growth pro­jects,” said PCG man­ag­ing direc­tor and chief ex­ec­u­tive of­fi­cer Datuk Sazali Hamzah in a state­ment yes­ter­day.

“Sa­mur is a sig­nif­i­cant mile­stone for us and we are con­fi­dent that it will con­tinue to pos­i­tively im­pact our bot­tom line,” he added.

Sazali noted that op­er­a­tional and com­mer­cial ex­cel­lence re­main PCG’s core pri­or­ity to en­sure long-term busi­ness sus­tain­abil­ity.

“Im­por­tantly, the busi­ness de­liv­ered re­silient Ebitda (earn­ings be­fore in­ter­est, tax, de­pre­ci­a­tion and amor­ti­sa­tion) with a 40 per cent mar­gin and sound im­prove­ments in cost ef­fi­ciency. With this good per­for­mance, PCG is well-po­si­tioned op­er­a­tionally and fi­nan­cially to pur­sue its growth agenda,” he added.

The com­pany re­mains cau­tiously op­ti­mistic about the out­look in the sec­ond half of the year, given the volatile crude oil prices and the over­sup­ply sit­u­a­tion in the petro­chem­i­cal mar­ket.

Sazali said the third quar­ter would see PCG un­der­tak­ing heavy statu­tory turn­around ac­tiv­i­ties at sev­eral of its plants as planned, co­in­cid­ing with bear­ish mar­ket con­di­tions.

Datuk Sazali Hamzah

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