Update Petronas Chemicals 4Q profit halved to RM450m, pays 12 sen dividend

by **Cals** Tue 11 Feb 2014, 01:48

Update Petronas Chemicals 4Q profit halved to RM450m, pays 12 sen dividend

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Monday, 10 February 2014 19:21

KUALA LUMPUR (Feb 10): Petronas Chemicals Group Bhd reported a 50% fall in fourth quarter net profit from a year earlier. Profit fell on lower sales volume of petrochemical products and higher maintenance expenses for its production facilities.

In a statement to the stock exchange today, Petronas Chemicals said net profit fell to RM450 million in the fourth quarter ended December 31, 2013 from RM902 million. Revenue declined to RM3.35 billion from RM4.38 billion.

"The group recorded revenue of RM3.3 billion, lower by RM1.0 billion or 24% compared to the corresponding quarter on the back of lower sales volumes.

"The lower sales volumes were due to heavier maintenance activities and external supply limitations across both segments," Petronas Chemicals said.

The company said its sales volume of olefins, fertiliser and methanol fell as production declined.

Production declined as the the firm undertook maintenance of its faclities during the quarter, it said.

Petronas Chemicals' full-year net profit dropped to RM3.15 billion from RM3.52 billion a year earlier. Revenue was lower at RM15.2 billion compared to RM16.6 billion.

Despite a weaker bottom line, Petronas Chemicals plans to pay a dividend of 12 sen a share for the quarter in review. This brings full-year dividends to 20 sen a share.

"The board of directors of the company has declared a second interim single-tier dividend of 12 sen per ordinary share, amounting to RM960 million to shareholders, payable on 18 March 2014," the company said.

At Petronas Chemicals shares' latest closing price of RM6.75, the full-year dividend of 20 sen a share translates into a 3% yield, according to calculations by theedgemalaysia.com.

Looking ahead, Petronas Chemicals said its performance would hinge on world petrochemical prices, global economic conditions, and the the utilisation rates of the company's production facilities.

"The utilisation of our production facilities is dependent on plant maintenance activities, sufficient availability of feedstock and utilities supply," Petronas Chemicals said.