KUALA LUMPUR, Malaysia--Petronas Chemicals Group Bhd. (5183.KU), the chemical-processing arm of Malaysia's national oil company, Petronas, said on Thursday that its net profit for the third quarter climbed 2.5% on-year on the back of stronger sales and production.
Net profit for the July-September period rose to 913 million ringgit ($216 million) from MYR891 million a year ago, according to a local stock-exchange filing made by the company.
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However, earnings before interest, tax, depreciation and amortization declined 2% to MYR1.4 billion, mainly due to higher operating expenditures, according to the company.
Revenue climbed 12.6% to MYR4.01 billion during the quarter from MYR3.56 billion in the year-earlier quarter, primarily driven by higher prices and a strengthening U.S. dollar as well as higher sales volumes, Petronas Chemicals said.
Petronas Chemicals said it expects the olefins and derivatives market to be stable in the near term, drawing support from higher feedstock prices, partially negated by seasonal low demand in China.
The fertilizer business is expected to be firm, supported by demand from the agriculture sector and the unavailability of supply from the Middle East, it added.
Petronas Chemicals also said methanol prices are expected to stabilize owing to a regional supply shortage alongside stable downstream demand.
Shares of Petronas Chemicals declined 1.5% to MYR7.36 after the earnings release, underperforming the local benchmark stock index's 0.19% rise.
Write to Yantoultra Ngui at Yantoultra.Ngui@wsj.com.
(END) Dow Jones Newswires
November 09, 2017 02:55 ET (07:55 GMT)