KUALA LUMPUR: Petronas Chemicals Group Bhd reported a 23.7 per cent increase in net profit to RM777 million for the second quarter ending June 30, 2024 (2QFY24), compared to RM628 million in the same quarter of the previous year.
Group revenue rose 8.6 per cent to RM7.7 billion from RM7.1 billion in the corresponding quarter last year.
The growth in revenue was primarily driven by increased sales volume in the group's fertilisers and methanol segment and a higher contribution from the specialities segment.
Petronas Chemicals declared an interim dividend of RM800 million, representing 55 per cent of the profit after tax and non-controlling interest for the first half of 2024 (1H24).
Petronas Chemicals managing director and chief executive officer Mauzin Ismail said the chemical industry is experiencing the effects of increased volatility.
"We have to contend with a longer period of overcapacity and low demand. We are steadfast in executing our business excellence initiatives to maintain efficiency and profitability while ensuring our future-proofing strategies, including decarbonisation, remain on track," he said.
Mauzin said the company will have a few plant turnaround and maintenance activities planned in the second half of the year.
"In the next few months, we anticipate that the olefins and derivatives segment will soften as supply returns following the end of regional shutdowns while downstream demand remains weak.
"Urea is forecast to firm up as the agricultural application picks up while supply availability continues to weigh down methanol," he said.
He noted that the specialities segment is expected to see a limited recovery in the second half of the year as the global market conditions remain uncertain with ongoing geopolitical tension and continued slow recovery in market demand.
"Headwinds are expected to persist in the building and construction sector, while the automotive sector shows indications of flattish demand in 2H24, despite selective improvement in the consumer goods sector," he added.