KUALA LUMPUR: Petronas Chemicals Group Bhd’s (PetChem) net profit rose 42.5 per cent to RM4.18 billion in the year ended December 31 2017 from RM2.93 billion previously.
Group revenue increased 25.6 per cent to RM17.41 billion from RM13.86 billion a year ago.
For the fourth quarter, PetChem’s net profit increased 1.8 per cent to RM1 billion from RM987 million previously. Group revenue rose 20.1 per cent to RM4.74 billion from RM3.95 billion.
In a filing to Bursa Malaysia today, PetChem said the improved revenue was due to strengthening prices and further supported by higher sales volumes.
PetChem said the group’s plant utilisation was at 93 per cent, slightly lower than 96 per cent in the corresponding quarter following higher level of statutory turnaround and maintenance activities undertaken during the current quarter.
However, the group achieved higher production and sales volumes mainly contributed by Sabah Ammonia Urea (SAMUR) which commenced commercial operation in May last year.
PetChem said moving into 2018, the results of its operations are expected to be primarily influenced by global economic conditions, utilisation rate of its production facilities and petrochemical products prices which have a high correlation to crude oil prices, particularly for the olefins and derivatives segment.
“The utilisation of our production facilities is dependent on plant maintenance activities and sufficient availability of feedstock as well as utilities supply.
“The group will continue with its operational excellence programme and supplier relationship management to sustain plant utilisation level at above industry benchmark,” it said.
PetChem declared a second interim single tier dividend of 15 sen per ordinary share, amounting to RM1.2 billion to shareholders for the year under review.
The dividends are payable on March 21.