PETRONAS Chemicals managing director and chief executive officer Mazuin Ismail.
KUALA LUMPUR: PETRONAS Chemicals Bhd ended 2024 on a strong quarter as foreign exchange gains boosted its bottomline.
The petrochemicals group reported a net profit of RM519mil in the quarter ended Dec 31, 2024, more than four times the net profit of RM112mil in the year-ago quarter.
It said this was in line with improved earnings before interest, taxation, depreciation and amortisation (Ebitda) of RM710mil, and unrealised forex gain on revaluation of shareholder loan to PPC.
Basic earnings per share jumped to six sen from one sen previously.
Meanwhile, revenue during the quarter under review was RM7.46bil, up from RM7.21bil previously.
Over the full financial year, the group recorded a net profit of RM1.18bil, down from RM1.7bil in FY23, while revenue rose ot RM30.67bil from RM28.67bil in the previous year.
In line with the performance, PETRONAS Chemicals declared a second interim dividend of three sen per share, with ex and payment dates on March 10, 2025 and March 20, 2025, respectively.
PETRONAS Chemicals managing director and CEO Mazuin Ismail said the group met its operational targets, with plant utilisation for the olefins and derivatives (O&D) and fertilisers and methanol (F&M) segments returning to above the 90% mark.
He said market conditions are expected to remain unchanged in 2025 in view of the uncertaities posed by changing geoeconomic policies and potential retaliatory actions by affected countries, in addition to ongoing geopolitical events.
"We still must contend with oversupply in global petrochemical products, even as demand recovers given that capacity additions are expected to exceed demand growth by approximately 50% this year.
"From late 2024 and into 2025, we have observed a decline in prices and spreads in O&D, with signs that Southeast Asia integrated spreads is anticipated to remain in a trough," he added.
"For PETRONAS Chemicals, resilience and agility are key to navigate the challenging environment. We remain focused on ensuring safe and efficient operations, keeping a close eye on the market and strengthening our financial discipline."
