KUALA LUMPUR (Aug 10): Petronas Chemicals Group Bhd's (PetChem) second quarter net profit rose 109% to RM964 million, from RM462 million a year earlier, as revenue increased on higher sales volume and prices. 

In a statement to Bursa Malaysia today, PetChem said revenue climbed to RM3.96 billion in the second quarter ended June 30, 2017 (2QFY17), from RM3.2 billion in 2QFY16. 

"The quarter under review marked a significant milestone for the group, with the commencement of commercial operations at the Sabah ammonia and urea (SAMUR) plant in May 2017. With the new plant onstream and running smoothly, the group’s production and sales volumes grew against the corresponding quarter, with overall group plant utilisation of 90% for the quarter. 

"Group revenue rose by RM757 million or 24% to RM4.0 billion, driven by higher sales volume, higher prices and stronger US Dollar. Overall average product prices improved on higher crude oil price," PetChem added. 

PetChem said 1HFY17 net profit rose to RM2.26 billion, from RM1.05 billion a year earlier, while revenue was higher at RM8.65 billion versus RM6.35 billion. The company proposed a dividend of 12 sen a share for the quarter in review.

Looking ahead, PetChem expects its plant utilisation and petrochemical product prices, which have a high correlation to crude oil, to influence the group's performance.

"The utilisation of our production facilities is dependent on plant maintenance activities and sufficient availability of feedstock, as well as utilities supply," PetChem said.

At 12:30pm, PetChem's shares settled unchanged at RM7.01 for a market value of RM56.08 billion. The stock saw 70,200 shares traded.