KUALA LUMPUR: Petronas Chemicals Group Bhd (PetChem) recorded its highest-ever quarterly earnings of RM1.86bil in the second quarter ended June 30, 2021, representing a nine-fold increase over the RM186mil recorded in the previous corresponding quarter on the back of crude oil price recovery.
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 second-quarter 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 managing director and chief executive officer Datuk Sazali Hamzah in a statement.
Petchem Sasali Hamzah
Earnings before interest, taxes, depreciation and amortisation rose by RM1.5bil to RM2.2bil due to the improved margin.
For the quarter under review, the group’s plant utilisation was at 97%, lower than the 100% a year earlier, mainly due to the higher level of statutory turnaround activities undertaken resulting in lower production and sales volumes.
PetChem announced an interim dividend payout of RM1.84bil or 23 sen per share, representing 55% of profit after tax for the first half of 2021.
Over the first half, the group posted a net profit of RM3.32bil, which was almost a four-fold increase over the RM692mil in the same period in 2020.
Revenue was at RM10.28bil, 45% higher than RM7.07bil in the first half of financial year 2020.
Given the year-to-date results, Sazali is optimistic over an overall improvement in performance this year.
He said the group will continue with its initiatives, including cost optimisation measures, to maximise the financial performance in the current industry uptrend.
Meanwhile, 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 startup of the integrated complex towards the end of the year,” he said.