KUALA LUMPUR: Ancom Nylex Bhd
remains positive on its outlook for the rest of the year despite ongoing market volatility, citing potential gains from rising solvent prices.
“Whilst taking cognisance of the turbulent market conditions, the management is positive on the remaining year as the increase in the solvent inventory prices is likely to give rise to better results in the industrial chemical distribution division,” the integrated chemical group said in a filing with Bursa Malaysia.
The Board remains committed to exercising prudence in managing the business under these conditions
In the third quarter ended Feb 28, Ancom Nylex’s net profit remained stable at RM18.3mil, or earnings per share of 1.72 sen compared with RM18.05mil, or 1.77 sen in the year-ago quarter.
Revenue, however, dipped marginally to RM446.1mil against RM449mil a year prior.
For the nine months to Feb 28, Ancom Nylex posted a net profit of RM56.4mil, up 21.5% from RM46.4mil while revenue declined to RM1.32bil against RM1.41bil previously.
Ancom Nylex has also proposed a second interim dividend by way of distribution of treasury shares on the basis of one treasury share for every 100 shares. The dividend-in-specie will be completed on May 12.
Managing director and group CEO Datuk Lee Cheun Wei said ongoing conflicts in the Middle East have introduced significant volatility into energy and shipping markets.
He said disruptions at key chokepoints such as the Strait of Hormuz have pushed up oil prices, insurance premiums and transportation costs, adding pressure on businesses already grappling with elevated energy costs and supply chain disruptions.
“For us at Ancom, we continue to be vigilant in light of the difficult operating environment. Nevertheless, demand for the Agrichem segment continues to hold up, supported by favourable crop prices.
“In addition, the final product registration approval for the group’s core active ingredient product for soybean application in Brazil was publicly published last month, allowing soybean to be included on the product label.
“This strategically positioned us to tap into the 2026 soybean planting season, which is approximately five times larger than the sugarcane crop currently served by the group,” Lee said in a separate statement.
