PETALING JAYA: TMK Chemical Bhd cautioned that its performance can be affected by challenges like market price of fluctuations of inorganic chemicals and ongoing global geopolitical conflicts.
Other headwinds also include recessionary risks, fluctuations in the US dollar, Singapore dollar and Vietnam dong exchange rates as well as stiff competition.
For the third quarter ended Sept 30, 2024 (3Q24), the chemical management and storage company recorded a net profit of RM29.2mil, translating to an earnings per share of 35 sen. The group also posted a revenue of RM348.2mil.
TMK Chemical said its earnings were mainly derived from the provision of total chemical management segment which contributed to RM344.5mil or 98.9% of the total revenue in 3Q24.
For the nine-month period ended Sept 30, 2024, the group saw a net profit of RM89mil and a revenue of RM1bil.
This is TMK Chemical’s first set of financial results and there are no comparative figures. The group is en route to list on the Main Market of Bursa Malaysia tomorrow.
In line with TMK Chemical’s on-going business expansion and its growth strategy to continue enhancing its upstream manufacturing capacity for chlor-alkali derivatives, the group intends to construct its Banting Plant 2.
The company stated that it will be manufacturing chlor-alkali derivatives, namely sodium hydroxide, chlorine, hydrochloric acid, sodium hypochlorite and hydrogen at the new plant.
TMK Chemical said the construction of the Banting Plant 2 is in anticipation of future growth in the demand of chlor-alkali derivatives, supported by both existing and new businesses across all the industries that it services.
Additionally, the construction of the new facilities is also expected to result in better overall cost efficiency.
Going forward, TMK Chemical said it will continue to improve its own productivity and efficiency to face external uncontrollable factors and challenges.
