Business

Slightly higher pre-tax for Petronas Chemicals & Gas

The better revenue for Petronas Chemicals in the first quarter of this year was due mainly to higher sales and more favourable foreign exchange rates.

The better revenue for Petronas Chemicals in the first quarter of this year was due mainly to higher sales and more favourable foreign exchange rates.

Syndicated News
Written by Syndicated News

KUALA LUMPUR — May 9, 2016: Petronas Chemicals Group (PetChem) posted a slightly higher pre-tax profit of RM896 million in the first quarter ended last March 31 from the RM843 million in the same period last year.

Revenue rose to RM3.15 billion from RM3.14 billion on the back of higher sales volume and favourable foreign exchange rates. PetChem attributed the better results to a stronger operational performance.

Plant utilisation improved to 92 per cent in the quarter on the back of continued improvements in plant reliability and higher feedstock supply.

This has helped PetChem mitigate the impact of lower petrochemical product prices stemming from the low crude oil price environment, the company said in a statement today.

Managing Director/Chief Executive Officer Datuk Sazali Hamzah said the Brent crude oil price, which averaged at USD34 per barrel during the
quarter, had an impact on petrochemical product prices.

“However, our commitment to operational excellence has helped cushion the impact of lower product prices through increased volumes and higher efficiency, resulting in lower unit operating costs.

“On the commercial front, we strive towards improving customers experience and optimising our cost-to-serve, thus ensuring continuous sales with healthy returns.”

Sazali said the outlook for this year remains soft and PetChem would continue to focus on operational and commercial efficiencies, as well as effective delivery of growth projects in order to continue bringing value to its customers and shareholders.

Also posting a slightly pre-tax profit dor the same quarter was Petronas Gas, from RM571.29 million in the same period last year to RM578.72 million in the first quarter of this year ending last March 31.

Revenue increased to RM1.13 billion from RM1.10 billion previously.

In a filing to Bursa Malaysia, Petronas Gas said the revenue was primarily contributed by higher gas processing revenue in line with higher
performance based structure income and higher regasification revenue attributed to higher storage fees.

The group is expected to remain steady this year amid the challenging economic environment backed by its solid business models. — Bernama

 

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