PetChem net profit surges to RM4.98b

KUALA LUMPUR: Petronas Chemicals Group Bhd’s (PetChem) net profit in the financial year ended December 31, 2018 surged 19.14 per cent to RM4.98 billion from RM4.18 billion in the same period a year ago.

PetChem said in a filing with Bursa Malaysia yesterday the higher earnings were attributed to the improvement of average product prices, in tandem with the strengthening of crude oil prices.

Revenue jumped 12 per cent to RM19.58 billion from RM17.41 billion a year ago due to higher product prices and sales volumes.

In the fourth quarter, PetChem’s net profit increased 27.72 per cent to RM1.29 billion from RM1.01 billion, while revenue rose 6.75 per cent to RM5.06 billion from RM4.74 billion previously.

The company said its performance was expected to be influenced by global economic conditions, foreign exchange rate, utilisation of production facilities and petrochemical product prices.

“We will continue with operational excellence programme to sustain plant utilisation level at above the industry benchmark.”

The group anticipates the olefins and derivatives segment to soften in the coming quarter, in view of ample supply from Southeast Asia.

It also expects its fertiliser and methanol segment to be soft as supplies resume after plant turnarounds amid lower demand.