KUALA LUMPUR (Nov 6): Petronas Chemicals Group Bhd’s net profit rose 4% to RM661 million in the third quarter ended September 30, 2014 from RM635 million a year earlier. Profit growth came on higher revenue as production volume rose.
According to Petronas Chemicals' filing with Bursa Malaysia today, revenue climbed to RM3.55 billion from RM3.53 billion.
Petronas Chemicals said production volume increased following higher plant utilisation. But sales volume did not increase in tandem as the higher production was mainly catered for intermediary products.
"Average realised price for the group was comparable against the corresponding quarter. Product prices were mixed across the board with higher polymer prices on the back of higher ethylene feedstock cost and higher fertiliser prices following tight supply availability from key producers," Petronas Chemicals said.
Petronas Chemicals said it recorded higher plant utilisation at 75% compared to 70% in the previous corresponding quarter.
For the nine months, Petronas Chemicals said net profit declined to RM1.96 billion from RM2.7 billion a year earlier. Revenue weakened to RM10.7 billion from RM11.85 billion previously.
Going forward, Petronas Chemicals said results of the group's operations were expected to be be primarily influenced by fluctuations in international petrochemical products prices and global economic conditions.
Petronas Chemicals is also mindful of the utilisation rate at its production facilities.
"The utilisation of our production facilities is dependent on plant maintenance activities, sufficient availability of feedstock and utilities supply.
"With improved plant maintenance programme and supplier relationship management, we expect to achieve better plant utilisation for the year," Petronas Chemicals said.
Petronas Chemicals shares climbed one sen or 0.16% to settle at RM6.12 at 12.30pm.
At that price, the company has a market capitalisation of RM48.96 billion.