Malaysia’s Petronas Chemicals Group Bhd reported a net profit of MYR1.96 billion ($468.34 million) for the third quarter of 2021. That represents a 317% jump from MYR471.0 million in the corresponding quarter in 2020. The strong profit growth was underpinned by higher product prices, increased crude oil price, tight supply, and robust product demand. Petronas Chemicals' third-quarter EBITDA came in at MYR6.0 billion ($1.43 billion), rising by MYR3.6 billion from a year earlier thanks to improved margin. Its quarterly revenue soared 67% year-on-year to MYR5.77 billion ($1.38 billion).
For the first nine months of the year, Petronas Chemicals' net profit stood at MYR5.29 billion ($1.26 billion), rising by a whopping 456% from a year earlier. The company’s revenue for the period gained 52.5% year-on-year to MYR16.05 billion ($3.84 billion).
Petronas Chemicals said in a bourse filing that its olefins and derivatives segment posted a profit after tax (PAT) of MYR955 million ($228.19 million) for the third quarter. That represents an improvement of MYR697 million from a year earlier, driven by higher EBITDA and a share of profit from joint ventures and associates. The company’s fertilisers and methanol business registered a PAT of RM983 million ($234.89 million), MYR660 million higher than a year earlier due to a higher EBITDA and share of profit from joint ventures and associates.
The company announced it would pay a special dividend of MYR800 million ($191.16 million) or 10 sen ($2.39) per share by December 30, 2021. Looking ahead, the group expects global economic conditions to influence its performance. It anticipates prices for olefins and derivatives to remain steady amid global economic recovery. Fertilisers and methanol prices are projected to strengthen due to rising natural gas prices and stronger demand. Petronas Chemicals' shares were down one sen to MYR8.30 ($1.98) on Sunday.
