KUALA LUMPUR, Aug 26 — Petronas Chemicals Group Bhd (PetChem) is leading the gainers’ list on Bursa Malaysia this morning.

At 10.28am, the counter rose 19 sen or 2.3 per cent to RM8.34, with 3.7 million units transacted.

According to its filing with Bursa Malaysia, the company’s net profit had soared to RM1.86 billion in the second quarter ended June 30, 2021 (Q2 2021) from RM186.0 million recorded in the same period last year.

Revenue also increased to RM5.61 billion from RM3.18 billion previously, largely fueled by higher petrochemical product prices amidst the recovery in crude oil prices and demand. 

"The group anticipates petrochemical product prices to remain stable in the coming quarter, amidst continued reduced supply and demand recovery,” it said.

PetChem noted that the Covid-19 pandemic has continued to affect the global economy and the market would remain volatile, adding that it would continue to navigate market uncertainties by leveraging its operational and commercial excellence.

The group also expects its operations to be primarily influenced by global economic conditions, as well as petrochemical product prices (which have a high correlation to the crude oil price, particularly for the olefins and derivatives segment), utilisation rate of its production facilities and foreign exchange rate movements.

Meanwhile, CGS-CIMB said PetChem’s earnings outlook for Q3 2021 is looking to be as strong as Q2 2021.

In the first half of 2021 (1H2021), the company’s net profit jumped to RM3.32 billion from RM692 million in 1H2020, while revenue advanced to RM10.28 billion from RM7.07 billion previously.

CGS-CIMB said PetChem’s 1H2021 core net profit had outperformed at 77 per cent of its full-year forecast, due to better-than-expected selling prices and utilisation rates.

"As PetChem achieved its highest-ever half-year profit, it had also declared its highest-ever interim dividend of 23 sen, representing a payout of 55 per cent -- slightly higher than its stated policy of a minimum 50 per cent payout, giving shareholders a dividend yield of 2.8 per cent.

"We forecast a full-year dividend per share of 41 sen, based on a 55 per cent payout,” it noted. — Bernama