Business

Petronas Chemicals’ pre-tax profit down

Revenue for the year was also down.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — May 7, 2015: Petronas Chemicals Group’s (PCG) pre-tax profit dropped to RM843 million in the first quarter ended last March 31 from RM1.09 billion in the same period last year.

In a filing to Bursa Malaysia today, the company said revenue decreased to RM3.14 billion from RM3.80 billion previously due to lower average realised product prices and favourable exchange rate movements.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) declined by 10 per cent to RM1.12 million.

Against this backdrop, the group recorded significantly higher plant utilisation at 90 per cent for the quarter compared to 80 per cent previously.

“As a result, PCG attained higher production and sales volume, which partly mitigated the impact of lower product prices following falling crude prices,” it said.

In a separate statement, president/chief executive officer Datuk Sazali Hamzah said their goal of driving volume growth by focusing on internal
reliability programmes has resulted in more efficient plant operations.

“Along with our cost optimisation efforts, we also achieved lower operating expenses, hence, strong Ebitda margin despite the challenging market environment,” he said.

On prospects, the group would continue to hone its operational, marketing and sales excellence by delivering volume that would secure the best value
amid the challenging market conditions.

“This, coupled with our well diversified product portfolio, competitive cost advantage and strong cash position will allow us to consistently deliver strong Ebitda margins,” said Sazali. — Bernama

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