KUALA LUMPUR, Nov 22 — Petronas Chemicals Group Bhd’s (PetChem) net profit for the third quarter ended Sept 30, 2021 (Q3), surged 317 per cent to to RM1.96 billion from RM471.0 million in the same period last year.
Its earnings before interest, taxation, depreciation, and amortisation during the quarter was higher by RM3.6 billion at RM6.0 billion mainly due to improved margin.
Revenue soared 67 per cent or RM2.3 billion to RM5.77 billion from RM3.46 billion previously, largely due to higher product prices in tandem with improving crude oil price, tight supply and healthy demand from global economic recovery, the group said in a filing with Bursa Malaysia today.
For the first nine months of 2021, the company’s net profit jumped to RM5.28 billion from RM1.16 billion a year earlier, while revenue for the period went up to RM16.05 billion from RM10.53 billion.
In a separate statement, PetChem announced a special dividend of 10 sen per share totalling RM800 million, payable on Dec 30, 2021, to commemorate the 10th anniversary of its listing, celebrated in 2020.
Managing director/chief executive officer Datuk Sazali Hamzah said the market recovery is expected to be moderate in Q3 2021 onwards.
He, however, said product prices remained relatively high following Hurricane Ida in August that disrupted supply in North America and prolonged downtime in Middle Eastern urea plants amid demand recovery as Covid-19 restrictions eased.
"Although polymer prices were lower by about five per cent compared to Q2 2021, urea and methanol prices grew strongly by about 25 per cent and 10 per cent respectively.
"Through our operational and commercial excellence, we performed well by optimising our production and sales against market movements,” he said.
On PetChem’s outlook for the rest of 2021, Sazali said the current market conditions augur well for the group.
"We may see some reduction in demand due to the resurgence of Covid-19 infections and China’s policy to reduce energy intensity and limit total energy consumption.
"Nonetheless, other offsetting factors such as the natural gas shortage in Europe and the Organisation of the Petroleum Exporting Countries Plus production decisions may continue to support crude oil prices, and in turn, the prices of our products,” he added.
Updating on the Pengerang Integrated Complex, he said the petrochemical facilities are scheduled to commence in Q1 2022. — Bernama
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