Petronas Chemicals records revenue of RM12.2b for nine months

KUALA LUMPUR, Nov 27 – Petronas Chemicals Group Bhd (PCG) recorded a revenue of RM12.2 billion for the nine-month financial period ended Sept 30, 2012, slightly lower than RM12.3 billion seen in the corresponding period of 2011.

The group recorded lower product prices during the nine months whilst sales volume was maintained at similar levels.

Overall, plant operational performance improved, mainly supported by the group’s olefins and derivatives segment, said President/Chief Executive Officer Dr Abd Hapiz Abdullah in a statement today.

“It has been a challenging quarter for the petrochemical industry. For PCG, our plant performance improved but we were limited by external factors. We will continue to push plant performance to be more agile in adapting to market challenges,” he said.

Profit for the nine-month period fell by 16 per cent to RM2.8 billion with lower operating profits recorded in line with lower product prices and higher feedstock prices.

Lower results from associate companies amidst challenging market conditions also contributed towards lower profit for the period, the group said.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) decreased eight per cent to RM4.3 billion.

For the quarter ended Sept 30, 2012, the group recorded revenue of RM3.9 billion, lower by 15 per cent from the previous corresponding quarter due to lower prices and volumes.

“Production was curtailed by feedstock limitations and heavier plant maintenance activities. This included the precautionary shutdown following the fire onboard a vessel at the group’s jetty facilities in Labuan,” it added.

The group’s profit for the quarter fell by 40 per cent to RM795 million while EBITDA decreased 34 per cent to RM1.2 billion as a result of thinning spreads.

Market conditions were less favourable for olefins and derivatives products during the nine months compared to both the corresponding period and quarter.

Pessimism over the global economy and lower than anticipated growth in China affected product demand. In contrast, fertiliser and methanol market conditions were more robust. – Bernama


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