KUALA LUMPUR, Malaysia--Petronas Chemicals Group Bhd. (5183.KU), the chemical-processing arm of Malaysia's national oil company Petronas, announced on Thursday that its net profit for the second quarter doubled from a year earlier mainly on the back of higher volumes, a stronger U.S dollar and lower operating expenditure.
Net profit for the three months ended June rose to 964 million ringgit ($225 million) from MYR462 million a year ago, according to a local stock-exchange filing.
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Revenue climbed 23.6% to MYR3.96 billion during the quarter from MYR3.20 billion the same quarter a year earlier, driven by higher sales volume, higher prices and a stronger U.S. dollar, Petronas Chemicals said.
Looking ahead, Petronas Chemicals said it anticipated the olefins and derivatives market to firm in the near term, drawing support from tight supply condition from scheduled turnarounds and increased demand from restocking activities.
The company, however, expected an overall bearish undertone for fertilizers as demand slows amid a supply glut.
Methanol prices were expected to be stable primarily due to healthy downstream demand and cheaper feedstock prices, it added.
Shares of Petronas Chemicals were unchanged at MYR7.01 at the midday break before the earnings release, outperforming the local benchmark stock index's 0.07% drop.
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(END) Dow Jones Newswires
August 10, 2017 02:25 ET (06:25 GMT)