KUALA LUMPUR: Petronas Chemicals Group Bhd's (PetChem) net profit catapulted 878.9 per cent year-on-year (YoY) to RM1.86 billion for the second quarter ended June 30, 2021, from RM186.00 million recorded previously.
The integrated chemicals producer said this was largely contributed by higher average product prices for olefins and derivatives; and fertilisers and methanol segments.
PetChem's Q2 revenue jumped 75.9 per cent YoY to RM5.61 billion from RM3.19 billion, fuelled by improved product prices, higher earnings before depreciation and amortisation (Ebitda) and net share of profit from joint ventures and associates.
For the first-half year period, PetChem's net profit soared 381.2 per cent to RM3.32 billion from RM692.00 million, while revenue jumped 45.4 per cent to RM10.28 billion from RM7.07 billion.
Its board of directors has declared a first interim single tier dividend of 23 sen per share, payable on September 30 this year.
PetChem said its operations were expected to be primarily influenced by global economic conditions as well as petrochemical products prices which have a high correlation to crude oil price, particularly for the olefins and derivatives segment.
Utilisation rate of the group's production facilities and foreign exchange rate movements could also affect the overall performance this year.
"The utilisation of our production facilities is dependent on plant maintenance activities and sufficient availability of feedstock as well as utilities supply."
The group said it would continue with its operational excellence programme and supplier relationship management to sustain plant utilisation level at above industry benchmark.
"The Covid-19 pandemic continues to affect the global economy and the market will remain volatile. We will navigate market uncertainties by leveraging our operational and commercial excellence."
PetChem expects petrochemical product prices to remain stable in the coming quarter, amid continued reduced supply and demand recovery.