KUALA LUMPUR: Samchem Holdings Bhd
sees the current consolidation in the global petrochemical industry as a positive trend that could boost chemical prices and improve its margins, according to executive chairman Ng Thin Poh.
“We view the ongoing consolidation within the global petrochemical industry as a positive development which could potentially support chemical prices thereby enhancing our margins.
“This trend may also prompt manufacturers to streamline operations by outsourcing distribution, creating growth opportunities for distributors like Samchem. With our expanded infrastructure in Malaysia and Vietnam, we are well-positioned to capitalise on these opportunities,” he said in a statement.
In the second quarter ended June 30 (2Q24), the integrated chemicals and lubricants distributor posted a lower net profit of RM5.06mil, or earnings per share of 0.93 sen compared with RM5.4mil, or 0.99 sen in the same corresponding quarter last year.
Revenue, however, rose 8% to RM298.4mil from RM276.2mil a year ago, primarily attributed to volume growth.
Samchem declared a second interim dividend of 0.5 sen per ordinary share.
“The 2Q24 was marked by softer activity levels due to two festive holidays in Malaysia and Indonesia. On the whole, we observed continued cautious sentiments amid China's slower-than-expected economic recovery and US recessionary concerns,” Ng said.
He noted that manufacturing activities in its key markets are stabilising, with stronger chemical demand from the construction and oil and gas industries.
“To navigate current market conditions, we are actively refining our product and service offerings. Our strategy involves penetrating new industries within our key markets, broadening our product range, and enhancing our value-added services. These initiatives will enable us to improve our market share as we await demand recovery,” he added.
