BASF Petronas Chemicals petrochemical complex in Gebeng Industrial Zone, Pahang.
KUALA LUMPUR: Petronas Chemicals Group Bhd
(PetChem) reported a net profit of RM704mil for its fourth quarter ended Dec 31, 2015, a 40% increase from RM500mil a year ago.
This brought the group’s cumulative net profit to RM2.78bil for financial year 2015 (FY15), compared to RM2.47bil the year before.
Total revenue, meanwhile, declined to RM13.54bil from RM14.59bil in FY15.
PetChem declared a dividend of 10 sen for the quarter, raising the cumulative dividend to 18 sen.
In a filing with Bursa Malaysia, the integrated chemicals producer noted that the rise in its Q4 FY15 pre-tax profit to RM791mil was due to impairments on assets worth RM262mil that was made in the corresponding quarter of 2014.
Excluding the impairment loss, PetChem’s pretax earnings would have been lower by RM41mil or 5%.
Its plant utilisation dipped slightly to 86% from 88% the year before due to a slightly higher level of maintenance activities.
The prices of PetChem’s products averaged lower during the year in line with the fall in crude oil prices. To worsen matters, demand was weaker amid the slowing economic growth, the group noted.
Its olefins and derivatives segment maintained a strong utilisation rate of 95%, resulting from higher ethane supply. On the other hand, prices were adversely affected by the subdued market demand largely attributable to the muted economic growth in China, it said.
As for the fertilisers and methanol business, the segment’s plant utilisation dropped to 79% compared to 84% a year ago due to the methane supply limitation at its methanol facilities. As a result, both production and sales volume decreased in comparison to the corresponding quarter, it noted.
Going forward, PetChem said its operations were expected to be mainly influenced by global economic conditions, utilisation rates of its facilities, and petrochemical product prices which have a high correlation to crude oil prices.
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