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Petronas Chemicals, Gas recorded higher Q2 net profit

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KUALA LUMPUR, Aug 15 2018 : Petronas Chemicals Group Bhd (PCGB) recorded a higher net profit of RM1.38 billion for the second quarter (Q2) ended June 30, 2018, compared with RM1.02 billion posted in the same quarter last year.

Revenue increased 20 per cent to RM4.73 billion from RM3.96 billion in the previous corresponding quarter, mainly driven by higher product prices and sales volume that was partially offset by the strengthening ringgit against the US dollar.

“Overall average product prices were higher compared with the corresponding quarter, contributed by the higher crude oil price,” it said in a filing with Bursa Malaysia today.

On prospects, PCGB said it expected future operations to be influenced by global economic conditions, foreign exchange rate movements, production facilities utilisation rates and petrochemical product prices.

“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 added.

Meanwhile, Petronas Gas Bhd’s (PetGas) net profit for the second quarter (Q2) ended June 30, 2018, rose to RM537.08 million from RM425.93 million registered in the same quarter last year.

Revenue increased 15.7 per cent to RM1.36 billion from RM1.17 billion previously mainly contributed by the group’s new liquefied natural gas regasification terminal in Pengerang, Johor, which commenced commercial operations in November 2017 and higher revenue from all segments.

In a filing with Bursa Malaysia today, PetGas said net profit for the six months ended June 30 increased to RM1.04 billion from RM889.09 million a year ago and revenue for the period stood at RM2.71 billion against RM2.34 billion in the previous year.

Based on its performance, the group said its gas processing plants achieved 100 per cent reliability, maintaining world-class standards.

“Liquid plant extraction performance consistently exceeded targets throughout the quarter, resulting in higher tranches of performance-based structure income earned compared to the corresponding quarter,” it said.

On prospects, PetGas said it was in continuous discussion with the Energy Commission to finalise the tariff guidelines for gas transportation and regasification services beyond 2018.

“The group’s performance is therefore expected to remain stable on the back of its strong and sustainable income streams from existing Gas Processing Agreement, Gas Transportation Agreements and Regasification Service Agreement signed with Petronas,” it added. – Bernama

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