Petronas Chemicals Q1 net profit more than doubles

PETALING JAYA: Petronas Chemicals Group Bhd’s net profit in the first quarter ended March 31, 2017 (Q1’17) more than doubled to RM1.3 billion, from RM592 million in the previous corresponding quarter.

Revenue grew 49% to RM4.7 billion, compared with RM3.15 billion in the same period last year, on the back of higher sales volume, higher prices and stronger US dollar.

In a filing with Bursa Malaysia yesterday, the group said it achieved exceptional operational performance with higher plant utilisation of 99% compared to 92% in the corresponding quarter on the back of improved plant reliability and higher feedstock supply.

“Consequently, both production and sales volumes were higher,” it said.

In addition, the group said its overall average product prices improved significantly compared to the corresponding quarter by an average of 22%, while earnings before interest, taxes, depreciation, and amortization (ebitda) surged by RM794 million or 69% to RM1.9 billion, on improved spreads and higher volumes.

“The results of the group’s operations are expected to be primarily influenced by global economic conditions, utilisation rate of our production facilities and petrochemical products prices which have a high correlation to crude oil prices, particularly for the olefins and derivatives segment.

“The utilisation of our production facilities is dependent on plant maintenance activities and sufficient availability of feedstock as well as utilities supply,” it added.

On prospects, the group said it will continue with its operational excellence programme and supplier relationship management to sustain plant utilisation level at above industry benchmark, albeit slightly lower than 2016 due to higher statutory turnarounds planned.

Petronas Chemicals added that its new world scale fertiliser plant in Sipitang, Sabah has reached full design capacity and is expected to contribute to the group’s results in the second quarter onwards.