KUALA LUMPUR, May 27 — Petronas Chemicals Group Bhd’s (PCG) net profit jumped to RM1.46 billion in the first quarter ended March 31, 2021 (1Q21) from RM506.0 million in 1Q20, largely due to improvements in both crude oil and petrochemicals prices, boosted by global demand recovery.
Revenue for the quarter also increased to RM4.68 billion from RM3.89 billion year-on-year, on the back of a significant increase in average product prices, underpinned by high demand and tight supply environment.
Managing director/chief executive officer Datuk Sazali Hamzah said the results were a stark contrast to the petrochemical industry’s performance in 2020.
In addition to improved crude oil price, average product prices moved upward, higher than expected, by 20 per cent to 30 per cent due to tight supply of products stemming from winter storms in the United States in February, he added.
“This resulted in improved margin across all our product segments, including those of our joint ventures and associate companies,” said Sazali in a statement today.
Moving forward, he said while the market was still bullish, product prices have begun to moderate as demand normalises.
“Given the healthy demand for our products, we are optimistic for a better performance in 2021. However, given the resurgence of Covid-19, we will remain vigilant of changes in the market,” said Sazali.
The integrated chemical producer said a key focus for PCG in 2021 was to maintain operational efficiency, as several of the group’s production plants across Malaysia were scheduled for major statutory maintenance and turnaround this year.
With the successful completion of the statutory turnarounds in the methyl tertiary butyl ether/propane dehydrogenation (MTBE/PDH) plant in Kuantan and Methanol Plant 1 in Labuan in May, the group will endeavour for the remaining turnarounds to be conducted successfully within the second half of the year.
“On the market front, we are better prepared for changes in the market given our experience managing global supply disruptions last year,” said Sazali.
On PCG’S growth strategy, Sazali said that pursuing investments in both basic and specialty chemicals would continue to be its priority despite market challenges.
On the progress of Pengerang Integrated Complex, he noted that the group was gearing for full start-up in the second half of 2021. — Bernama
