KUALA LUMPUR, Aug 13 (Bernama) -- Petronas Chemicals Group Bhd (PetChem) recorded a slightly lower net profit of RM1.12 billion in the second quarter ended June 30, 2019 (2Q19), compared with RM1.44 billion secured in the same period last year, amid declining crude oil price and softer market demand.
Revenue slipped by eight per cent to RM4.34 billion for the quarter under review from RM4.73 billion a year ago.
“The lower revenue was largely due to lower product prices partially offset by higher sales volume and the weakening of ringgit against US dollar,” the group said in a filing with Bursa Malaysia today.
PetChem said the revenue of olefins and derivatives segment declined to RM2.35 billion in 2Q19 from RM2.75 billion in 2Q18, while fertilisers and methanol decreased to RM1.98 billion from RM2.00 billion previously.
Both segments were lower due to the decline in product prices, partially offset by higher sales volume and the weakening of ringgit versus US dollar, it said.
Going forward, PetChem said the results of its operations were expected 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.