PetChem 3Q net profit up 4% to RM661m

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KUALA LUMPUR: Petronas Chemicals Group Bhd’s (PetChem) net profit rose 4% to RM661 million for the third quarter of financial year 2014 ended Sept 30 (3QFY14) from RM635 million a year earlier on higher sales volume, particularly from its high margin ethane-based products.

Revenue rose by a marginal 0.6% to RM3.55 billion from RM3.53 billion.

In a statement yesterday, PetChem said a major driving force for the increase in sales volume was the higher plant utilisation rate for its olefins and derivatives (O&D) segment during the July to September quarter, following the completion of the planned heavy turnaround activities in 2QFY14.

This was further supported by the generally improving O&D market prices relative to 2QFY14.Plant utilisation was 75% compared with 70% in 3QFY13.

For the nine months period, PetChem’s net profit declined 27% to RM1.96 billion from RM2.7 billion a year earlier, while revenue fell 10% to RM10.7 billion from RM11.85 billion previously.

 

This article first appeared in The Edge Financial Daily, on November 7, 2014.