By Chester Tay
Petronas Chemicals Group Bhd.'s first-quarter net profit dropped 36% compared with the same period a year earlier as product prices declined due to softer demand amid the Covid-19 pandemic.
Net profit was 506.0 million ringgit ($116.4 million), on the back of a 5.8% fall in revenue to MYR3.89 billion, the company said in a stock exchange filing Wednesday.
Moving forward, Petronas Chemicals said its olefins and derivatives businesses are expected to see product prices recover marginally toward the end of the year if the Covid-19 pandemic eases and there is an improvement in oil prices.
Management expects the group's fertilizers and methanol businesses to see stable prices into the year's end as fertilizer demand is less affected by the virus.
Petronas Chemicals said methanol demand is projected to improve gradually with the recovery in crude oil prices and an improvement in downstream derivatives demand.
Write to Chester Tay at firstname.lastname@example.org