The integrated chemicals producer said higher net profit in the quarter was mainly due to other income relating to the revaluation of trade payables, partially offset by unrealised foreign exchange loss on the revaluation of shareholders’ loans to a joint operation entity.
PCG’s revenue also increased 8.7% to RM7.73 billion against RM7.11 billion mainly driven by higher sales volume in the group’s fertilisers and methanol segment and higher contribution from the specialties segment.
For the six-month period, PCG’s net profit went up to RM1.45 billion from RM1.16 billion year-on-year while revenue expanded to RM15.23 billion from RM14.67 billion.
PCG said higher revenue for the first six months of the year was due to higher contributions from the specialties segment coupled with positive foreign exchange impact.
In a statement, managing director and CEO Mazuin Ismail said the group was steadfast in executing its business excellence initiatives to maintain efficiency and profitability while ensuring its future-proofing strategies, including decarbonisation, remain on track.
“The business landscape is becoming more complex, and the chemicals industry is feeling the impact of heightened volatility where we have to contend with a longer period of overcapacity and low demand,” he said.
Mazuin said PCG has a few plant turnaround and maintenance activities planned in the second half of 2024, during which the group’s focus is for the safe execution of these activities.
“Furthermore, we are also looking forward to the commercial operations of our joint-venture plant, PCG PCC Oxyalkylates in Kertih, Terengganu.
“In the next few months, PCG anticipates that the olefins and derivatives segment would soften as supply returns following the end of regional shutdowns while downstream demand remains weak,” Mazuin said.
He added urea is forecast to firm up as the agricultural application picks up while supply availability continues to weigh down methanol.
In Q2 2024, PCG’s plant utilisation rate improved to 89% from 87% in the first quarter of 2024, contributing to a marginal increase in production volume.
PCG declared an interim dividend of 10 sen per share for the financial year ending Dec 31, 2024. The dividend amounting to RM800 million, is payable in September 2024.
As at 4.05pm, PCG’s share price was up by 32 sen or 6.04% at RM5.62, giving the group a market capitalisation of RM44.96 billion.