Wednesday August 29, 2012
Better profit for PCG
PETALING JAYA: Petronas Chemicals Group Bhd (PCG) boosted its profit for the second quarter ended June 30 by 8% year-on-year to RM900mil.
It said in a statement that this was achieved on the back of a 16% increase in revenue to RM3.9bil in the quarter due to improved operational performance, despite average prices being marginally lower.
PCG said the jump in the group’s profit was in line with higher earnings before interest, taxes, depreciation and amortisation (EBITDA) at RM1.4bil.
“The group’s revenue for the six-month period also rose by 8% to RM8.3bil against the corresponding period with better operational performance and higher sales volume,” it said.
However, profit for the first half-year was marginally lower by 1% at RM2.1bil.
“This was attributable to lower contribution from one of our associate companies amid challenging market conditions and higher tax expenses for the group.
“Tax expenses in the corresponding period were lower due to a once-off tax adjustment. In contrast, EBITDA was higher by 9% at RM3bil,” it said.
Against the preceding quarter ended March 2012, the group’s performance was lower as a result of higher level of maintenance activities at its fertilisers and methanol business segment, coupled with tougher market conditions for its olefins and derivatives business segment.
“Group revenue decreased by 11% to RM3.9bil over the preceding quarter with lower sales volume and product prices recorded, whereas EBITDA fell 14% to RM1.4bil.
“Our diversified portfolio of products has helped us offset the complexities faced in the current business environment,” it said.
PCG president and chief executive officer Dr Abd Hapiz Abdullah said the group would continue with product optimisation and focus on markets that would provide it with the best value.
The board has declared an interim single-tier dividend of 8 sen per share, amounting to RM640mil to shareholders, payable on Oct 16.