PetCHEM‘S Q3 PROFIT GROWS TO RM913M

KUALA LUMPUR: Petronas Chemicals Group Bhd (PetChem) said the sale of 50 per cent in PRPC Polymers Sdn Bhd for US$900 million (RM3.8 billion) to Aramco Overseas Holdings Coöperatief U.A. (AOHC) is progressing.

PetChem group managing director and chief executive officer Datuk Sazali Hamzah said the equity stake sale of PRPC Polymers to AOHC, a unit of PetChem Saudi Arabian oil Co (Aramco) is 55 per cent into completion.

Sazali then noted PetChem's third-quarter profit grew 2.5 per cent to RM913 million from RM891 million, thanks to higher production and sales volume from the commissioning of its Sabah Ammonia Urea (Samur) plant in May.

The group’s third-quarter revenue had risen 13 per cent to RM4.01 billion from RM3.56 billion previously.

On outlook, Sazali said improving crude oil prices was lending support to the petrochamicals market.

“We’re seeing more demand and we’re able to price our products favourably,” he said, adding that its Gebeng production of citral, L-menthol and citronellol were coming onstream soon.

“The successful delivery of Samur and other upcoming growth projects in Gebeng and Pengerang will ensure our continued business growth.”

At the 5pm yesterday, PetChem’s shares slid seven sen to close at RM7.40. This gives PetChem a market capitalisation of RM59.2 billion.

PetChem is one of the top 10 companies on FTSE4Goof Bursa Malaysia Index, out of 200 largest companies.