KUALA LUMPUR: Petronas Chemicals Group Bhd recorded its highest-ever quarterly earnings of RM1.86bil in the second quarter ended June 30, 2021, representing a nine-fold increase over RM186mil recorded in the previous corresponding quarter on the back of a recovery in crude oil prices.
The group's revenue was 76% higher year-on-year (y-o-y) to RM5.6bil due to the product prices growing in tandem with crude prices.
"Rising crude oil prices in 2Q 2021, combined with the rebound in petrochemicals demand, had strengthened product prices and improved profit margins.
"Compared to the previous year, prices of polymers and urea increased by about 70% and 60% respectively, while ammonia and methanol prices had doubled," said Petronas Chemicals managing director and CEO Datuk Sazali Hamzah in a statement released in conjunction with the earnings result.
Ebitda rose RM1.5bil to RM2.2bil due to the improved margin.
For the quarter under review, the group's plant utilisation was 97%, lower than 100% a year earlier mainly due to the higher level of statutory turnaround activities undertaken resulting in lower production and sales volumes.
Petronas Chemicals announced an interim dividend payout of RM1.84bil or 23 sen per share, representing 55% of 1H2021 profit after tax.
Over the first half of 2021, the group posted a net profit of RM3.32bil, which was almost a four-fold increase over RM692mil in the same period in 2020. Revenue was RM10.28bil, 45% higher than RM7.07bil in 1H2020.
Given the year-to-date results, Sazali is optimistic over an overall improvement in performance this year.
He added that the group will continue with its initiatives, including cost optimisation measures, in order to maximise the financial performance in the current industry uptrend.
Meanwhile, the new capacities such as the petrochemical facilities within the Pengerang Integrated Complex are not expected to make material contribution to the bottom line this year.
"Our plan is to progress towards a safe and successful start-up of the integrated complex towards the end of the year," said Sazali.