CCM’s Q1 profit eases to RM6.24m
KUALA LUMPUR: Chemical Company of Malaysia Bhd (CCM) posted a lower net profit of RM6.24 million in the first quarter ended March 31, compared with RM9.98 million a year ago, on softer prices of chemical products.
Group revenue eased 4.4 per cent to RM97 million from RM101.4 million in the corresponding period last year.
However, group managing director Nik Fazila Nik Mohamed Shihabuddin remains optimistic about its outlook this year.
“During the first quarter, we completed the divestment of our Nilai land, which raised RM21.5 million, and we will use the proceeds to repay borrowings.
“In tandem with the completion of our de-gearing exercise, we managed to reduce finance costs by RM3 million in the period under review,” she said in a statement yesterday.
Nik Fazila said the reactivation of the Pasir Gudang Plant 1 would accelerate the growth of CCM’s chemical business.
The reactivation will increase the total chlor-alkali production capacity by 50 per cent annually.
“Our polymer business is progressing well and set to advance steadily in tandem with the growth prospects of the global demand for gloves,” she added.
Following the lower average selling prices of its chlor-alkali products, CCM’s pre-tax profit declined 34.5 per cent to RM9.5 million from RM14.5 million in the same period last year despite the higher volume sold.
The group’s chemical business recorded higher sales for its key chlor-alkali products by between 12 and 35 per cent during the quarter under review.
The division’s revenue decreased 6.1 per cent to RM74.4 million from RM79.2 million in the first quarter of last year.