PetChem 1Q net profit higher to RM2 billion

by ANIS HAZIM / pic source:

PETRONAS Chemicals Group Bhd’s (PetChem) net profit surged 41% to RM2.1 billion for the first quarter ended March 31, 2022 (1Q22), from RM1.46 billion a year ago, supported by higher product prices and continued strong demand.

In a filing with Bursa Malaysia today, the group’s earnings per share jumped to 26 sen from 18 sen.

Its revenue increased 42% to RM6.63 billion from RM4.67 billion a year ago, boosted by higher average product prices fuelled by a combination of continued high demand unmet due to prolonged supply disruptions and higher crude oil and natural gas prices from the geopolitical crisis.

“Earnings before interest, taxation, depreciation and amortisation (Ebitda) margin was comparable at 37% from 36% in 1Q21 due to the higher product spreads,” PetChem said in a statement accompanying its results.

Despite a lower plant utilisation rate of 87% compared to 90% in the same quarter last year, the group’s sales volume remained high at RM1.9 million metric tonnes due to higher statutory turnaround and maintenance activities.

Commenting on the results, its MD and CEO Mohd Yusri Mohamed Yusof is delighted that the group’s finances see a strong start to the year 2022.

“Despite market volatility and supply chain challenges, PetChem’s vigilance and commercial excellence strategy enabled the group to meet sales target even as certain cities in China were under lockdown for several weeks,” Mohd Yusri said.

As for its projects this year, PetChem has commenced start-up operations at Pengerang Integrated Complex (picture) as planned in early May, while the commissioning activities are progressing accordingly.

At the time of writing, PetChem’s share price rose 1.22% or 12 sen to RM9.99, valuing the group at RM79.92 billion.