In the third quarter ending September 30, 2014, higher sales volume of high margin ethane-based products, helped net profit at Petronas Chemicals climb 4.1 percent, from a year ago quarter.
Net profit in the third quarter of 2014 rose to RM661 million from RM635 million in the corresponding quarter of 2013, at Malaysia-based Petronas Chemicals Group.
Petronas Chemicals said group revenue for the reporting quarter rose marginally to RM3.54 billion, from RM3.52 billion, a year ago.
According to Petronas, hike in sales volumes were driven by higher plant utilisation rate at the olefins and derivatives segment, during the quarter under review.
“Further support also came from generally improving olefins and derivatives market prices, when compared with the previous second quarter”, the petrochemicals producer added.
Pre-tax profit slipped to RM899 million for the third quarter ended September 30, 2014, from RM925 million in the same quarter of 2013.
“Although, global economic environment and market conditions remain highly challenging, Petronas continues to be resilient in posting healthy margins,” its CEO Sazali Hamzah, said.
He added, “We are committed to achieving target plant utilisation rates alongside the anticipated market up-cycle in 2016.”
Earnings for the third quarter of 2014 stood at 8 sen per share, with dividend payout to shareholders amounting to RM640 million.
On its outlook, Petronas said, "The group expects that feedstock supply will improve further in the first quarter of 2016, when supply from another new field is expected to be available.”
Petronas expects its future operations to be mainly influenced by fluctuations in global petrochemical products prices, utilisation rate of its production facilities and global economic conditions.
"Following full completion of maintenance activities, despite challenging market conditions, barring any unforeseen circumstances, we expect operations in the next quarter to improve," it said. (AR)
