KUALA LUMPUR, Aug 25 — Petronas Chemicals Group Bhd’s (PetChem) net profit surged to RM1.86 billion in the second quarter ended June 30, 2021 (Q2 2021), from RM186.0 million recorded a year earlier.
In a filing with Bursa Malaysia today, PetChem said the improved earnings were in line with higher earnings before interest, taxation, depreciation, and amortisation (EBITDA), and higher net share of profit from joint ventures and associates.
During the quarter, EBITDA was higher by RM1.5 billion at RM2.2 billion, in line with improved margin.
Meanwhile, revenue for the quarter also increased to RM5.61 billion from RM3.18 billion year-on-year, largely due to higher petrochemical product prices, fuelled by rising crude oil prices and strong rebound in global demand.
On a cumulative basis, the company’s net profit jumped to RM3.32 billion in the first half of 2021 (H1 2021) from RM692.0 million a year earlier, while revenue for the period went up to RM10.28 billion from RM7.07 billion.
PetChem said strong operations maintained in the second quarter, with sales volume at 2.1 million tonne and plant utilisation rate of 97 per cent.
The integrated chemical producer also announced an interim dividend payout of RM1.84 billion representing 55 per cent of H1 2021’s net profit.
In a separate statement, PetChem managing director/chief executive officer Datuk Sazali Hamzah said rising crude oil prices in the second quarter this year, combined with the rebound in petrochemicals demand, had strengthened product prices and improved profit margins.
“Compared to the previous year, prices of polymers and urea increased by about 70 per cent and 60 per cent respectively, while ammonia and methanol prices had doubled,” he added.
On PetChem’s outlook for the rest of 2021, Sazali said the integrated chemical producer expects the price growth to be moderate in the second half of 2021.
“Given the first half achievement, an overall improvement in our performance this year looks promising. We will continue with our initiatives, including cost optimisation measures, to maximise our financial performance in the current industry uptrend,” he added.
Sazali noted that PetChem’s profit would mainly come from its existing production capacity.
“The new capacities, mainly the petrochemical facilities within the Pengerang Integrated Complex, are not expected to make material contribution to our bottom line this year. Our plan is to progress towards a safe and successful start-up of the integrated complex towards the end of the year,” he added. — Bernama
Source: Malay Mail
