PetChem swings to RM18mil net loss on forex impact, despite higher revenue
In a statement today, PetChem attributed the loss primarily to unfavourable foreign exchange movements.
Despite this, the group's revenue rose three per cent year-on-year to RM7.7 billion in the quarter.
"This is driven by higher average prices of urea, methanol, and polyethylene as well as improved sales performance in the specialties segment," it said.
PetChem said its earnings before interest, tax, depreciation and amortisation (ebitda) rose 26 per cent to RM892 million.
The increase was driven by improved product spreads for urea, methanol, methyl tert-butyl ether (MTBE) and olefin derivatives, alongside lower operational costs.
The group said its olefins and derivatives (O&D) segment managed to recover from utilities supply disruptions that affected several plants in Kertih, as well as reduced production at Pengerang Petrochemicals Company Sdn Bhd due to feedstock unavailability.
"These external issues, combined with the limited uplift in product prices amid industry oversupply, resulted in the O&D segment recording a 4 per cent decrease in quarterly revenue to RM3.5 billion," it said.
Managing director and chief executive officer Mazuin Ismail said the improvement in ebitda reflects the group's ongoing efforts on operational excellence with commendable plant utilisation rate achieved by its commodities business.
Moving forward, Mazuin said the group will closely monitor these developments and assess broader implications on the overall market dynamics.
"To maintain our resilience and competitiveness amid the current industry downturn, we remain focused on driving excellence.
"Our unwavering commitment to safe and efficient operations across all facilities continues as we are currently undertaking repair and maintenance activities at several O&D and F&M plants.
"At the same time, we are strengthening customer relationships to better meet their evolving needs, while upholding strict financial discipline and prudent capital spending," he added.
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