(Updated)

PetChem reports record high quarterly net profit of RM2.08b for 1Q

PetChem reports record high quarterly net profit of RM2.08b for 1Q
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KUALA LUMPUR (May 27): Petronas Chemicals Group Bhd (PetChem) said on Friday the company delivered a record high quarterly net profit after first quarter net profit climbed to RM2.08 billion from RM1.46 billion a year earlier on higher product prices amid continued strong demand for the company's petrochemicals.

In a statement to Bursa Malaysia, PetChem said revenue rose to RM6.63 billion in the first quarter ended March 31, 2022 (1QFY22) from RM4.68 billion a year earlier.

PetChem did not declare any dividend for 1QFY22, according to the filing.

In a separate statement on Friday, PetChem said its 1QFY22 solid financial performance was mainly attributed to higher prices across all product segments, especially ammonia and urea, underpinned by elevated energy prices amid continued strong global demand for petrochemicals and supply disruptions.

"Revenue increased 42% year-on-year to RM6.6 billion, boosted by higher average product prices, fuelled by a combination of continued high demand unmet due to prolonged supply disruptions; and higher crude oil and natural gas prices resulting from geopolitical crisis.

"Sales volume remained high in 1QFY22 at 1.9 million metric tonnes despite lower plant utilisation rate of 87% (1QFY21: 90%) as a result of higher statutory turnaround and maintenance activities," PetChem said.

In quarterly terms, PetChem said 1QFY22 profit after tax (PAT) of RM2.07 billion surpassed 4QFY21 PAT of RM2 billion by 2%.

PetChem managing director/chief executive officer Mohd Yusri Mohamed Yusof said in the statement that compared with a year ago, average product prices are higher by 20% to 60%.

"While we observed some seasonal moderation of prices in certain products compared to 4QFY21, product prices remain firmly robust as Russia-Ukraine conflict continues to escalate, further supported by strong demand.

"Despite market volatility and supply chain challenges, Petronas Chemicals' vigilance and commercial excellence strategy enabled the group to meet sales target even as certain cities in China were under [Covid-19-driven]
lockdown for several weeks," Mohd Yusri said.

Updating on the group's growth projects, Yusri said: "We commenced start-up operations at Pengerang Integrated Complex as planned in early May and the commissioning activities are progressing accordingly," he said.

At Bursa's 12.30pm break on Friday, PetChem's share price settled up 15 sen or 1.52% at RM10.02 for a market value of RM8.02 billion.

PetChem has eight billion outstanding shares, according to its latest quarterly financial report.