KUALA LUMPUR (May 21): Petronas Chemicals Group Bhd's net profit fell 18% to RM1.07 billion in the first quarter ended March 31, 2018 (1QFY18) from RM1.3 billion a year earlier.
The company said net profit fell due to a stronger ringgit against the US dollar and a one-off adjustment relating to under accrual of manpower-related expenses.
In a filing with Bursa Malaysia today, Petronas Chemicals said revenue rose to RM4.95 billion from RM4.7 billion.
"Revenue increased by RM256 million or 5% to RM5 billion primarily driven by higher sales volumes and product prices, partially offset by the strengthening of ringgit against US dollar. EBITDA decreased by RM100 million or 5% to RM1.8 billion as the increase in sales volumes and product prices were offset by the strengthening of ringgit against US dollar and a once-off adjustment relating to under accrual of manpower-related expenses in the previous periods.
"Profit after tax was also lower by RM274 million or 20% to RM1.1 billion in line with lower EBITDA, coupled with the impact of foreign exchange loss on its shareholder loans pursuant to the divestment of 50% equity interest in a subsidiary," Petronas Chemicals said.
Looking ahead, Petronas Chemicals said the results of the group's operations are expected to be primarily influenced by global economic conditions, foreign exchange rate movement, utilisation rate of its production facilities and petrochemical product prices. The group said petrochemical product prices have a high correlation with crude oil prices.
"The utilisation of our production facilities 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," Petronas Chemicals said.
At 12:30pm today, Petronas Chemicals shares settled at RM8.71 for a market capitalisation of RM69.6 billion. The stock saw 2.35 million shares traded.