KUALA LUMPUR (Nov 9): Petronas Chemicals Bhd (PetChem) registered 2.47% growth in net profit in the third quarter ended Sept 30, 2017 (3QFY17), thanks to higher production and sales volume achieved upon commissioning of its Sabah Ammonia Urea (SAMUR) plant in May this year.
In a filing to Bursa Malaysia, PetChem said quarterly net profit rose to RM913 million, from RM891 million a year ago. Earnings per share was, however, unchanged on-year at 11 sen. PetChem declared no dividend for the quarter.
"However, earnings before interests, tax, depreciation and ammortisation (EBITDA) marginally declined by RM26 million or 2% to RM1.4 billion, mainly due to higher operating expenditure relating to activities undertaken during the statutory turnarounds," the chemical group said.
Revenue in 3QFY17 rose 12.6% to RM4.01 billion, from RM3.56 billion last year, in tandem with higher sales volume, further supported by the strengthening of the US dollar in the quarter under review despite lower plant utilisation by percentage.
PetChem's olefins and derivatives segment achieved 82% plant utilisation compared with 100% in 3QFY16, as a result of statutory turnaround activities undertaken at its derivatives plant.
The company highlighted that segmental EBITDA declined 20% to RM852 million, amid higher operating expenditure incurred from the turnaround activities. "Despite lower volumes, revenue increased by RM91 million or 4% to RM2.6 billion," the filing added.
Similarly, its fertilisers and methanol segment saw plant utilisation decrease to 88%, from 96% last year - also due to the statutory turnaround activities, at its ammonia plant. Production however rose, thanks to commissioning of SAMUR plant earlier.
EBITDA for the segment improved by 52% to RM600 million, while revenue rose 33% to RM1.4 billion.
For its nine-month period ended Sept 30, 2017 (9MFY17), PetChem posted a 63.08% increase in net profit to RM12.67 billion, from RM9.91 billion in the same period last year, contributed by better performance by both its core segments.
Similarly, revenue jumped 27.78% to RM12.67 billion, from RM9.91 billion in 9MFY16.
"Average product prices continued to improve, following the ascending trend of crude oil price," PetChem said. "Group production and sales volumes increased with the commencement of commercial operation at the Samur plant in May 2017," the filing added.
PetChem said its plant utilisation rate is dependent on plant maintenance activities and sufficient availability of feedstock, as well as utilities supply.
"The group will continue with its operational excellence programme and supplier relationship management to sustain plant utilisation level at above industry benchmark," it added.
At noon market break, shares of PetChem dipped 10 sen or 1.34% to RM7.37, with 19.49 million shares traded. The chemical group had a market price of RM58.88 billion.