Petronas Chemicals posts net profit of RM2.81 bil in 2019

Revenue decreased to RM16.37 bil from RM19.58 bil previously, largely due to lower product prices partially offset by the weakening of the ringgit against US dollar, it said in a filing with Bursa Malaysia today.

Basic earnings per share declined to 35 sen from 60 sen before.

The company has declared a second single tier interim dividend of seven sen per share, with its ex-date on March 12, 2020 and payable on March 27, 2020. Dividend payment for FY19 amounted to 18 sen against 32 sen in FY18.

PCG said its plant utilisation was at 92% in FY19 which was comparable to the corresponding year. Consequently, production and sales volumes in FY19 were comparable with FY18.

“Overall average product prices were lower than the corresponding year in tandem with lower crude oil price and softer market demand,” it said.

Moving forward, PCG said the results of the group’s operations were expected to be primarily influenced by global economic conditions, foreign exchange rate movements, utilisation rate of its production facilities, and petrochemical products prices which have a high correlation to crude oil price, 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

PCG expects product prices to stabilise in the current quarter in view of supply limitation following planned regional plant turnarounds, supported by stable demand.

“However, we remain cautious amidst market uncertainties caused by the ongoing US-China trade disputes and the Covid-19 outbreak which could further dampen gross domestic product growth,” it added. – Feb 26, 2020, Bernama