Quarterly revenue climbed to RM7.11 billion, surpassing last year’s RM6.58 billion on higher sales volumes and incorporation of earnings from a recently acquired subsidiary, it said in a filing with Bursa Malaysia today.

Earnings per share dipped to eight sen per share from 23 sen previously. The group declared an initial interim dividend of eight sen per share to be paid on Sept 21.

For the six months ended June 30, net profit plummeted 70.63% to RM1.16 billion from RM3.95 billion in the previous year despite higher revenue of RM14.67 billion from RM13.22 billion.

Shaping PetChem’s prospects

Moving forward, the group stated its operational results will be mainly influenced by global economic conditions and pricing of petrochemical products, with a strong correlation to crude oil prices, particularly impacting the olefins and derivatives segment.

Additionally, the utilisation rate of production facilities and shifts in foreign exchange rates will also play a significant role in shaping the outcomes.

“The utilisation of our production facilities is dependent on plant maintenance activities and sufficient availability of feedstock as well as utilities supply.

“The group will continue with its operational excellence programme and supplier relationship management to sustain plant utilisation level at above industry benchmark,” it said.

It added that fertiliser and methanol product prices are forecast to stabilise amid short supply in the region.

“For specialties, the group expects weaker sales and earnings development moving forward, in view of slower industrial growth impacting demand,” it said.

PetChem’s shares closed 1.6% or 11 sen higher at RM7.01, valuing the group at RM56.08 billion.