26 February 2013 04:22 [Source: ICIS news]
SINGAPORE (ICIS)--PETRONAS Chemicals Group’s (PCG) net profit fell by 14% year on year to Malaysian ringgit (M$) 902m ($291m) in the fourth quarter of last year, weighed by one-off expenses, the producer said late on Monday.
“Excluding once-off discontinuation expenses and positive tax incentive impact, profit for the quarter would have been higher by 19% [year on year],” the company said in a statement.
In 2012, PCG reported expenses amounting to M$490m relating to the discontinuation of its vinyl business.
The company’s sales rose by 12% year on year to M$4.38bn in the quarter ended 31 December 2012, while its operating profit was down by 36% at M$754m.
For the full year of 2012, the company’s net profit fell by 11% year on year to M$3.84bn on the back of lower prices and demand.
The company’s sales rose by 2.2% year on year to M$16.6bn in 2012, boosted by strong operational performance and higher production volumes.
Its earnings before interest, tax, depreciation and amortisation (EBITDA) were down by 4.9% year on year at M$5.78bn for the full-year period.
“2012 was a challenging year for the petrochemical industry as global economic slowdown and uncertainty adversely affected petrochemical prices and demand,” PCG said.
“Although market conditions improved in the fourth quarter, lower prices and demand resulted in narrower product margins for the year,” it added.
($1 = M$3.10)
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