KUALA LUMPUR, Nov 25 — Petronas Chemical compounds Group Bhd (PetChem)’s internet earnings for the 3rd quarter ended Sept 30, 2022 (Q3 2022) slipped to RM1.90 billion from RM1.96 billion in the exact quarter very last yr due to softer margins and lessen contributions from joint ventures and associates.
Even so, its profits rose 22 for each cent to RM7.03 billion from RM5.77 billion beforehand on the back again of bigger regular item costs amid a stronger US greenback, coupled with improved production and gross sales volumes.
On a cumulative 9-month foundation, revenue jumped 26 for each cent to RM20.25 billion while internet profit expanded 11 for each cent to RM5.84 billion against the identical period previous calendar year.
Taking care of director/chief executive officer Mohd Yusri Mohamed Yusof reported item costs remained elevated in the 3rd quarter, supported by higher crude oil and energy charges, while reduce than in the second quarter.
He mentioned that production and profits volumes improved in the course of the quarter with the plant utilisation price bettering to 97 for every cent from 72 for every cent in the second quarter. About 70 for every cent of PCG’s manufacturing is exported in just the Asia Pacific location, with Southeast Asia earning up about 40 for each cent.
“While the more robust US dollar boosted our profits, we confronted margin pressures as a result of higher running charges.
“We are observing softening demand, particularly for polymer merchandise, as the substantial value of vitality persists amid extended Covid-19 lockdowns across China,” he claimed in a statement.
“Having declined to 2021 amounts in new weeks, the selling prices of olefins and derivatives are expected to moderate further more until finally the easing of limitations in China.
“However, urea price ranges are anticipated to keep on being high among US$550 (US$1=RM4.46) for each metric tonne to US$700 for every metric tonne as power selling prices remain elevated because of to the ongoing Russia-Ukraine war,” he additional. — Bernama