KUALA LUMPUR (Aug 9): Petronas Chemicals Group Bhd posted a 17% decline in second quarter net profit at RM462 million from a year earlier mainly on a RM241 million (US$59 million) asset write-off following the cancellation of its elastomers project.

In a statement to Bursa Malaysia today, Petronas Chemicals said its net profit in the second quarter ended June 30, 2015 (2QFY15) stood at RM557 million. Revenue fell to RM3.2 billion from RM3.31 billion on lower product prices.

"Overall average product prices were lower in tandem with the sharp decline in crude oil price.

"Profit after tax for the quarter, however, was lower by RM105 million or 16% at RM533 million mainly due to assets write-off amounting to RM241 million (US$59 million) in relation to the cancellation of elastomers project," Petronas Chemicals said.

In a separate statement, Petronas Chemicals said its elastomers project formed a part of the group's Refinery and Petrochemicals Integrated Development (RAPID) in Johor.

According to Petronas Chemicals' statement to Bursa Malaysia, net profit for the six-month period (1HFY16) declined to RM1.05 billion from RM1.16 billion a year earlier. Revenue dropped to RM6.35 billion from RM6.45 billion.

Despite the lower 2QFY16 and 1HFY16 net profits, Petronas Chemicals declared an interim dividend of seven sen a share for the quarter in review.

The ex and payment dates fall on Aug 22 and Sept 7 this year respectively.

On prospects, the company said it expects its operations to be influenced by petrochemical product prices, which track crude oil prices.

Petronas Chemicals said its production facilities utilisation rate would also be a factor to watch.

"The utilisation of our production facilities is dependent on plant maintenance activities and sufficient availability of feedstock as well as utilities supply. With improved plant maintenance programme and supplier relationship management, the group aims to achieve better plant utilisation for 2016 compared to the previous year," Petronas Chemicals said.

Today, Petronas Chemicals shares fell one sen or 0.2% to settle at RM6.59 for a market capitalisation of RM52.88 billion. The stock saw a traded volume of 2.5 million shares.