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KUALA LUMPUR: Petronas Chemicals Group Bhd
reported a jump in its earnings and revenue for the first quarter ended March 31, 2017 boosted by higher prices, sales and a stronger US dollar.
It said on Monday its earnings surged 119% to RM1.295bil from RM592mil while its revenue climbed 49.2% to RM4.695bil from RM3.147bil. Earnings per share were 16 sen compared with seven sen.
PetChem said the group achieved exceptional operational performance with higher plant utilisation of 99% compared to 92% a year ago due to improved plant reliability and higher feedstock supply. Hence, both production and sales volumes were higher.
“Overall average product prices improved significantly compared to the corresponding quarter by an average of 22%,” it said.
Earnings before interest, tax, depreciation and amortisation (Ebitda) surged by RM794mil or 69% to RM1.9bil on improved spreads and higher volumes.
PetChem said the olefins and derivatives segment attained 100% plant utilisation compared to 97% in the corresponding quarter, which saw higher production and sales volumes.
It also benefited from the 25% increase in average product prices with the recovery in crude oil prices. Revenue increased by RM973mil or 43% to RM3.2bil.
“Ebitda was higher than corresponding quarter by RM526mil or 65% at RM1.3bil driven by higher spreads and higher volumes. Profit after tax rose in tandem to RM933mil,” it said.
As for the fertilisers and methanol segment, it recorded higher plant utilisation of 96% compared to 89% a year ago mainly due to improved methane supply at the group’s methanol facilities.
It also noted that average product prices for methanol and urea increased by 41% due to higher demand coupled with tight regional supply amidst higher crude oil prices.
However, ammonia prices were adversely affected by oversupply in the market following new capacity additions.
Revenue for this segment rose 61% to RM1.5bil mainly due to to higher prices of methanol and urea as well as higher sales volume. Ebitda and profit after tax improved by RM284mil to RM622mil and by RM258mil to RM451mil.
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