PETRONAS Chemicals Group Berhad registered Profit After Tax (PAT) of RM809 million for its second quarter in the Financial Year Ending 31 December which was 15% higher compared to the same period in the previous quarter of RM633 million.
During the quarter, revenue grew 3% against 1Q 2024 to RM7.7 billion, mainly driven by higher sales volume in the Group’s Fertilisers & Methanol segment and higher contribution from the Specialties segment.
Global oversupply of petrochemicals, low growth and geopolitical unrests amidst uncertain macroeconomic outlook continue to weigh heavily on the sector. Prices of selected olefin products remained high on temporary supply shortages stemming from logistics disruption and plant maintenance shutdowns in the Asia Pacific region, whereas supply availability placed downward pressure on prices of urea, propylene and monoethylene glycols. Margin compression due to high energy, chemical feedstock and other operational costs continued to pose challenges, particularly for downstream producers.
For the cumulative first half of FY2024 the Group Revenue expanded 4% year-on-year to RM15.2 billion following higher contributions from the Specialties segment coupled with positive foreign exchange impact. Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) improved 6% year-on-year to RM2.3 billion and PAT was higher by 29% at RM1.5
billion against 1H 2023.
PCG announced an interim dividend of 10 sen of RM800 million representing 55% of 1H 2024 Profit After Tax and Non-Controlling Interest (PATANCI).
The group also noted that plant utilisation rate improved at 89% (1Q 2024: 87%) during the quarter contributing to marginal increase in production volume.
