Petronas Chemicals Net Profit Up 25.5 Pct In 1q

KUALA LUMPUR, May 29 (Bernama) -- Petronas Chemicals Group Bhd's (PCG) net profit for the first quarter ended March 31, 2024, (1Q 2024) increased by 25.5 per cent to RM668 million from RM532 million in 1Q 2023.

Revenue for the quarter slipped by 0.8 per cent to RM7.50 billion from RM7.56 billion previously, partially offset by the weakening of the ringgit against the US dollar.

PCG managing director and chief executive officer Mazuin Ismail said the group is pleased to have progressed from last quarter, having stabilised its plant utilisation rates and production volume.

“Our diversified portfolio of products has worked in our favour as improvement in the olefins and derivatives (O&D) segment helped counter the decline in average product prices in our fertiliser and methanol (F&M) segment.

“Our specialties segment has significantly improved following higher sales volume and product margins,” he said in a statement today.

He emphasised the importance of optimising production capacities across all segments, with five plants in both O&D and F&M segments scheduled for a statutory turnaround this year.

“Five of our plants in both O&D and F&M segments are scheduled to undergo statutory turnaround this year.

“In 1Q 2024, we completed the turnaround exercise in Petronas Chemicals Fertiliser Kedah Sdn Bhd as well as maintenance activities at several other plants,” Mazuin said.

On the market outlook, he said the group anticipates movement in product prices to be mixed moving into 2Q 2024, with some O&D products such as ethylene and aromatics showing improvement on supply limitation while others are relatively unchanged.

“Urea demand has moderated due to delayed regional planting season due to the hot weather, while methanol remains weak following muted downstream demand.

“Similarly, we are expecting divergent outlooks for the specialties segment as the construction sector continues to struggle with weak infrastructure growth and high interest rates, while products aimed at the automotive sector may see improved demand,” he said.

Moving forward, Mazuin said the group remains cautious of the ongoing geopolitical tensions which have contributed to the volatility in energy and feedstock prices as well as the uncertain macroeconomic environment.

In addition, he said that PCG is mindful of the potential impact of new capacities entering the market, contributing to an oversupply situation that will likely continue to weigh on product prices and margins.

-- BERNAMA