Petronas Chemicals Bhd registered the highest net money inflow of RM9.47mil last week.
KUALA LUMPUR: Petronas Chemicals Group Bhd
posted a stronger set of results in the financial year ended Dec 31, 2018 boosted by lower tax expenses and higher revenue.
It announced on Monday its net profit rose 19.2% to RM4.98bil from RM4.18bil in FY17. Its revenue increased by 12.4% to RM19.57bil from RM17.40bil. It proposed a second interim dividend dividend of 18 sen a share for the fourth quarter, higher than the 15 sen a year ago.
Petronas Chemical said earnings before interest, tax, depreciation and amortisation (Ebitda) was higher by RM347mil or 5% to RM7bil primarily driven by higher revenue. Profit after tax also increased by RM644mil or 15% to RM5.1bil in line with higher Ebitda, further supported by lower tax expense.
“The group plant utilisation was at 92%, slightly higher than 91% in the corresponding year. Production and sales volumes were higher largely contributed by urea production from Petronas Chemicals Fertiliser Sabah Sdn Bhd (PCFSSB) which commenced commercial operation in May 2017.
Overall average product prices were higher than corresponding year in tandem with higher crude oil price.
Revenue increased by RM2.2 billion or 12% at RM19.6bil on the back of higher product prices and sales volumes, partially offset by the strengthening of the ringgit against the US dollar.
Olefins and Derivatives
Plant utilisation increased from 94% in the corresponding year to 97% in the current year primarily due to lower level of maintenance activities. Production and sales volumes increased driven by better plant performance.
Average product prices improved in tandem with the strengthening of crude oil price.
Revenue increased by RM935mil or 8% at RM12.3bil largely due to higher product prices and sales volumes, partially negated by the strengthening of the ringgit against the US dollar.
Ebitda dipped by 1% to RM4bil following a once-off adjustment relating to under accrual of manpower-related expenses in respect of the previous year. Profit after tax increased by RM58mil or 2% to RM2.8bil contributed by lower tax expense.
Fertilisers and Methanol
Plant utilisation for the segment dipped to 89% against 90% largely driven by higher level of statutory turnaround activities at its urea and methanol plants.
However, both production and sales volumes increased, contributed by urea production from PCFSSB which commenced commercial operation in May 2017.
Average product prices strengthened across all products in line with higher crude oil price.
The segment recorded higher revenue by RM1.2bil or 19% to RM7.4bil mainly driven by higher prices and sales volumes.
Ebitda was higher by RM449mil or 17% at RM3bil in tandem with higher revenue. Profit after tax rose by RM652mil or 41% to RM2.3bil, supported by lower tax expense and higher share of profits from joint venture and associate.
Q4 FY18
For the fourth quarter, its net profit jumped 28.5% to RM1.28bil from RM1bil a year ago contributed by unrealised foreign exchange gain arising from its shareholders loan, partially offset by higher tax expense upon derecognition of unutilised business losses and reinvestment allowances.
Its Ebitda rose by RM58 million or 4% to RM1.7bil in tandem with higher revenue. Its revenue increased by 6.8% to RM5.06bil from RM4.74bil on the back of higher sales volumes and the weakening of the ringgit against US dollar. Earnings per share were 16 sen compared with 13 sen.
Petronas Chemicals said plant utilisation improved from 79% to 94% primarily due to lower level of statutory turnaround activities in the current quarter.
Production and sales volumes increased on the back of better plant utilisation. Overall average product prices declined as crude oil price weakened from the preceding quarter.
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