August 26, 2021

From Million To Billion, Petchem Appears With A 10 -Fold Profit Leap!

 Petronas Chemicals Group was listed among the highest profit counters after announcing a 10 -fold net profit in the second quarter ended June 30, 2021.

The company's net profit increased by RM1.86 billion compared to RM186.0 million achieved last year.

At 11.34am, the share price of Petronas Chemicals had jumped 14 sen or 2.45% to RM8.35 but before that it had reached RM8.60 during the market opening today.

Based on the information obtained, Petchem said the increase in income was the result of increased income before interest, tax, depreciation and amortization (EDITBA).

As a result, the company's revenue increased to RM5.61 billion from RM3.18 last year driven by higher product prices in line with the recovery in crude oil prices.

Petchem also said that stronger operations remained in the second quarter with total sales of 2.1 million tonnes and a plant utilization rate of 97%.

Petchem's Managing Director/Chief Executive Officer, Datuk Sazali Hamzah said the increase in oil prices as well as the recovery in demand for petrochemicals had strengthened product prices and increased profit margins.

"Cumulatively, the achievement at this level of performance is seen as a bright opportunity to continue our initiatives, including cost optimization measures," he added.

The group also announced its first interim dividend of 23 sen per share.