KUALA LUMPUR (Feb 23): Petronas Chemicals Group Bhd's (PetChem's) net profit rose 40.8% to RM704 million or 9 sen per share in the fourth quarter ended Dec 31, 2015 (4QFY15), from RM500 million or 6 sen per share a year ago, due to impairment loss in the corresponding quarter on assets relating to its butane-MTBE (methyl-tertiary-butylether) chain of RM262 million.

"Excluding the impairment loss, profit would have been lower by RM41 million or 5%," it said in a filing with Bursa Malaysia today.

However, revenue for the quarter fell 11.5% to RM3.45 billion, from RM3.9 billion in 4QFY14, weighed down by lower prices and slightly lower sales volume.

It also declared a second interim dividend of 10 sen per share for the financial year ended Dec 31, 2015 (FY15), payable on March 23.

"During the quarter, the group recorded plant utilisation of 86% compared with 88% in the corresponding quarter, on the back of slightly higher level of maintenance activities.

"Both production and sales volumes marginally decreased in tandem with plant utilisation," it added.

For the full year FY15, PetChem's net profit grew 12.6% to RM2.78 billion or 35 sen per share, from RM2.47 billion or 31 sen per share in FY14, while revenue expanded 7.2% to RM13.54 billion, from RM14.59 billion in FY14.

"We recorded a solid performance in 2015, with improved operational efficiency and increased profits and cash generation, despite highly challenging market conditions.

"We could not have increased earnings without our continued focus on efficiency, which resulted in lower unit operating costs," its president and chief executive officer Datuk Sazali Hamzah said in a statement today.

"For the first two months of 2016, crude oil and petrochemical product prices have remained soft and we expect the market to continue to be challenging, moving forward.

Lower petrochemical product prices will directly impact our profits," he added.

He said the group will continue to focus on operational and commercial efficiencies, as well as delivery of key growth projects.

Going forward, PetChem said its operations are expected to be primarily influenced by global economic conditions, utilisation rate of its production facilities and petrochemical products prices, which have a high correlation to crude oil prices, particularly for the olefins and derivatives segment.

"With improved plant maintenance programme and supplier relationship management, the group aims to achieve better plant utilisation for 2016," it added.

PetChem shares climbed three sen or 0.43% to settle at RM7.07 today, valuing it at RM56 billion.