PetChem quarterly net profit up slightly

PETALING JAYA: Petronas Chemicals Group Bhd’s quarterly net profit rose marginally with revenues rising at a higher quantum of 13% due to higher prices and a strengthening of the US dollar coupled with higher sales.

The company saw its third quarter ended Sept 30 net profit rising to RM913mil from RM891mil a year ago with basic earnings per share remaining flat at 11 sen compared with the same quarter a year ago.

Profits were mainly driven by the fertilisers and methanol segment despite a lower plant utilisation at 90% from 94% in the corresponding period as it was boosted by the commencement of Samur plant’s commercial operations in May 2017.

Lower overall plant utilisation was due to statutory turnaround activities undertaken at its ammonia plant.

“Overall average product prices strengthened mainly for methanol following improved demand. However, ammonia and urea prices weakened given oversupply situation in the market,” it said.

In a related development, the Employees Provident Fund (EPF) sold 25 million shares of its holdings in Petronas Chemicals on Nov 3.

According to a Bursa Malaysia filing, the EPF’s shareholdings now stood at 669.68 million shares or 8.37%.

This was the largest block of shares disposed of by the provident fund in recent months.

The disposal contrasted with an earlier filing that showed the EPF acquired three million shares on Nov 1.

Petronas Chemicals’ share price closed seven sen lower at RM7.40.