Petronas Chemicals' 1Q net profit hits record of RM2.08bil

KUALA LUMPUR: Petronas Chemicals Group Bhd reported a 42.09% leap in net profit in the first quarter ended March 31, 2022, to a quarterly high of RM2.08bil from RM1.46bil in the previous corresponding quarter on the back of higher product prices and strong demand.

Revenue for the quarter under review was RM6.63bil, a 41.9% increase over RM4.68bil in the comparative quarter.

The group attributed the solid financial performance to higher prices across all product segments, especially ammonia and urea, underpinned by elevated energy prices amid continued strong global demand and supply disruptions.

"Compared to a year ago, average product prices are higher 20% to 60%. While we observed some seasonal moderation of prices in certain products compared to 4Q 2021, product prices remain firmly robust as Russia-Ukraine conflict continues to escalate, further supported by strong demand.

“Despite market volatility and supply chain challenges, Petronas Chemicals’ vigilance and commercial excellence strategy enabled the group to meet sales targets even as certain cities in China were under lockdown for several weeks,” said Petronas Chemicals managing director and CEO Mohd Yusri Mohamed Yusof in a statement.

On recent developments, Yusri said start-up operations in Pengerang Integrated Complex commenced in early May and commissioning activities are progressing accordingly.

He also commented on the group's acquisition of Perstorp Holding AB, which is in line with its plans to develop a speciality chemicals segment to complement its existing gas-based commodities business.

"The acquisition of Perstorp is a major milestone for Petronas Chemicals in establishing a key platform to diversify into the specialty chemicals industry and capture new growth opportunities.

"This acquisition will also provide us critical talent, know-how, technological platforms and proven customer channels to address the pressing needs of the market for more sustainable solutions," he said.

On prospects, he said the speciality chemicals segment is expected to drive Petronas Chemicals' goal to generate additional 30% revenue from non-traditional business by 2030.

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