KUALA LUMPUR: The second quarter net profit of Petronas Chemicals Group fell 17 per cent from a year ago.
For the quarter ended June, the subsidiary of unlisted state oil company Petroliam Nasional made a net profit of RM462 million, it said Tuesday.
Revenue declined 3 per cent to RM3.2 billion from a year ago, the group said in a press release.
Among the reasons for this are its decision to write off an elastomers project and the weaker average prices of its products, according to the Nikkei Asian Review.
In April, Petronas Chemicals said it would not proceed with a planned USD3.9 billion project to build a plant for polymers, glycols and elastomers in Johor.
The project, which was part of the RM60 billion Refinery and Petrochemicals Integrated Development venture known as RAPID, was called off after a review into the product’s market outlook and return on investment.
The cancellation had resulted in an impairment cost of RM241 million, without which the profit after tax would have been 21 per cent higher at RM774 million, said the Nikkei Asian Review report.
Also, sales of olefins and derivatives weakened by 9 per cent to RM2.1 billion following the decline in crude oil prices and subdued demand.
In the fertiliser and methanol segment, however, revenue increased by 11 per cent to RM1.1 billion due to higher sales and a stronger US dollar.
Petronas Chemical’s shares ended unchanged at RM6.60 on Tuesday.