“Our key focus areas in 2020 include the ramp-up and commercialisation of Pengerang Integrated Complex which are currently undergoing performance test-runs, ” managing director and CEO Datuk Sazali Hamzah(pic) pointed out.
KUALA LUMPUR: Petronas Chemicals Group Bhd
(PetChem) expects product prices to stabilise in the coming quarter after a weak October-December period.
Net profit in the fourth quarter ended Dec 31 (Q4FY19) fell 66% to RM340mil as revenue fell 16% to RM4.23bil.
PetChem said in a statement that plant utilisation dropped to 89% compared with 94% in same quarter in the previous year.
“Production volume was lower.
However, sales volume was higher due to product drawdown from inventory, ” it said in a filing with Bursa Malaysia yesterday.
For the full-year, the company made a net profit of RM2.81bil, or 35 sen a share compared with RM4.79bil, or 60 sen a share previously.It has declared a second interim dividend of seven sen a share, to bring total payout for the year to 18 sen a share.
“The results of the group’s operations are expected to be primarily influenced by global economic conditions, foreign exchange rate movements, utilisation rate of our production facilities and petrochemical products prices which have a high correlation to crude oil price, particularly for the olefins and derivatives segment, ” it said on its outlook for 2020.
“The utilisation of our production facilities is dependent on plant maintenance activities and sufficient availability of feedstock as well as utilities supply, ” it added.
PetChem said the target is to sustain plant utilisation level at above industry benchmark.
“Our key focus areas in 2020 include the ramp-up and commercialisation of Pengerang Integrated Complex which are currently undergoing performance test-runs, ” managing director and CEO Datuk Sazali Hamzah pointed out.
The group expected product prices to stabilise in the coming quarterin view of supply limitation following planned regional plant turnarounds, supported by stable demand.
“However, we remain cautious amid market uncertainties caused by the ongoing US-China trade disputes and the Covid-19 outbreak which can further dampen GDP growth.”
