KUALA LUMPUR — Aug. 13, 2019: Petronas Chemicals Group (PetChem) recorded slightly lower net profit of RM1.12 billion in the second quarter ended last June 30 compared with RM1.44 billion a year prior to that amid declining crude oil price and softer market demand.
Revenue slipped by eight per cent to RM4.34 billion, largely due to lower product prices partially offset by higher sales volume and the weakening of the ringgit against the US dollar, the group informed Bursa Malaysia.
The revenue of the olefins and derivatives segment declined to RM2.35 billion from RM2.75 billion in the same quarter last year while fertilisers and methanol decreased to RM1.98 billion from RM2.00 billion.
PetChem expects the results of its operations to be primarily influenced by global economic conditions, foreign exchange rate movements, the utilisation rate of its production facilities and petrochemical products prices, which have a high correlation to the crude oil price, particularly for the olefins and derivatives segment.
“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. — Bernama