KUALA LUMPUR (Feb 23): Petronas Chemicals Group Bhd's (PetChem) net profit for the fourth quarter ended Dec 31, 2020 rose 37% year-on-year to RM466 million from RM340 million, on higher plant utilisation rate.

In a bourse filing today, PetChem said revenue for the quarter slipped to RM3.85 billion from RM4.23 billion previously, largely due to lower sales volume and product prices.

Earnings per share rose to six sen from four sen previously.

PetChem declared a second interim single tier dividend of seven sen per share amounting to RM560 million.

For the financial year ended Dec 31, PetChem recorded a lower net profit of RM1.63 billion versus RM2.81 billion in the prior year, on the back of revenue of RM14.36 billion against RM16.37 billion.

Commenting on its prospects, PetChem said its results are expected to be primarily influenced by global economic conditions, petrochemical products prices, which have a high correlation to crude oil prices, particularly for the olefins and derivatives segment, utilisation rate of production facilities and foreign exchange rate movements.

PetChem said the Covid-19 pandemic continues to adversely affect the global economy and it was also not spared.

“The utilisation of our production facilities is dependent on plant maintenance activities and sufficient availability of feedstock as well as utilities supply.

“The group will continue with its operational excellence programme and supplier relationship management to sustain plant utilisation level at above industry benchmark,” it said.

At midday break, PetChem shares were unchanged at RM7.55, giving it a market capitalisation of RM60.4 billion.