Business

Higher pre-tax for Petronas Chemicals

Syndicated News
Written by Syndicated News

KUALA LUMPUR — February 20, 2017: The pre-tax profit for Petronas Chemicals Group surged to RM4.11 billion in the financial year ended last December 31 from RM3.83 billion the year before.

Revenue rose to RM13.86 billion from RM13.54 billion previously, as higher sales volume coupled with a stronger US dollar, mitigated the effects from lower prices of petrochemical products.

The group said in a filing to Bursa Malaysia today t6hat its plant utilisation for the year stood at 96 per cent, surpassing the the previous year’s rate of 85 per cent, due to better plant reliability and improved feedstock supply.

This led to an increase in both production and sales volumes.

However, its average product prices decreased, following weaker crude oil prices.

In the fourth quarter, pre-tax profit increased to RM1.17 billion from RM912 million a year before, while revenue expanded to RM3.95 billion from RM3.45 billion.

Moving forward, the group expects its operations to be primarily influenced by global economic conditions and utilisation rate of production facilities.

Petrochemical product prices, which have a high correlation to crude oil prices particularly for the olefins and derivatives segment, would also affect results.

“The utilisation of our production facilities depends on plant maintenance activities, sufficient availability of feedstock, as well as supply of utilities.

“The group will continue with its operational excellence programme and supplier relationship management to sustain plant utilisation level at above industry benchmark, albeit, slightly lower than 2016, due to higher statutory
turnarounds planned,” it said.

The group will also commence operations at its new fertiliser plant in Sipitang  in the first quarter of this year. — Bernama

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