KUALA LUMPUR: Petronas Chemicals Group Bhd's (PetChem) said the sale of 50 per cent in PRPC Polymers Sdn Bhd for US$900 million (or RM3.8 billion) to Aramco Overseas Holdings Coöperatief U.A. (AOHC) is progressing.
In a statement today, PetChem group managing director and chief executive officer Datuk Sazali Hamzah said the PRPC Polymers stake sale to AOHC, a unit of PetChem Saudi Arabian oil Company (Saudi Aramco) is 55 per cent into completion.
Sazali then noted PetChem's third quarter profits grew 2.5 per cent to RM913 million from RM891 million, thanks to higher production and sales volume from the commissioning of its Sabah Ammonia Urea (SAMUR) plant since May 2017.
The group's third quarter revenue had risen 13 per cent to RM4.01 billion from RM3.56 billion, previously.
On outlook, Sazali said improving crude oil prices is lending support to the petro-chemicals market.
"We're seeing more demand and we're able to price our products favourably," he said, adding its Gebeng production of citral, L-menthol and citronellol are coming onstream soon.
"The successful delivery of SAMUR and other upcoming growth projects in Gebeng and Pengerang will ensure continued business growth," he added.
At 5pm today, PetChem's shares slid 7 sen to close at RM7.40. This gives PetChem a market capitalisation of RM59.2 billion.
PetChem is one of the top 10 companies on FTSE4Good Bursa Malaysia Index, out of the 200 largest companies listed on the stock market.