Mixed showing for PETRONAS firms in 4Q24

PETALING JAYA: Petroliam Nasional Bhd’s (PETRONAS) downstream companies posted a mixed bag of corporate results for the final quarter of 2024 (4Q24).

PETRONAS Chemicals Group Bhd (PetChem), in its filing with Bursa Malaysia, noted a foreign-exchange gain of over RM700mil from a shareholder loan to a joint-venture entity boosted its bottom line for the quarter.

That saw the petrochemicals group reporting a 363% year-on-year (y-o-y) rise in earnings to RM519mil, or an earnings per share (EPS) of six sen a share, for the period ended Dec 31, 2024.

The profit also marked a turnaround from the RM789mil net loss the company suffered in 3Q24.

PetChem’s revenue for 4Q24 rose 3% y-o-y to RM7.46bil despite bearish demand supply fundamentals of the petrochemical market.

For financial year 2024 (FY24), the group recorded a net profit of RM1.18bil, or an EPS of 14 sen, and declared a second interim dividend of three sen per share, with the ex and payment dates on March 10 and March 20, 2025, respectively.

Its managing director and chief executive officer (CEO) Mazuin Ismail said the group met its operational targets, with plant utilisation for the olefins and derivatives (O&D) and fertiliser and methanol (F&M) segments returning to above the 90% mark, but said market conditions remain challenging.

“We still must contend with oversupply in global petrochemical products, even as demand recovers, given that capacity additions are expected to exceed demand growth by 50% this year.

“From late 2024 and into 2025, we have observed a decline in prices and spreads in O&D, with signs that South-East Asia integrated spreads are anticipated to remain in a trough,” he stated in a statement.

PETRONAS Gas Bhd (PetGas), meanwhile, posted a net profit of RM417.03mil, or an EPS of 21 sen, on a revenue of RM1.62bil.

It declared a fourth interim dividend of 22 sen per share, with the ex-date on March 7 and payment on March 20, 2025.

The natural gas seller is anticipating a “healthy financial performance” in 2025, underpinned by a solid operational performance.

Managing director and CEO Abdul Aziz Othman said PetGas is committed to optimising cost efficiencies to mitigate the impact of projected higher operating costs, including costs associated with newly completed assets.

“The group will continue to prioritise sustainable growth initiatives and strive to maximise returns for shareholders,” he added in a statement.

For FY24, PetGas’ net profit came to RM1.84bil, or an EPS of 92.8 sen, or 1% higher y-o-y, while revenue amounted to RM6.54bil from RM6.45bil previously.

PETRONAS’ shipping business under MISC Bhd, however, posted a net loss of RM446.2mil, or a loss per share of 10 sen, in 4Q24 due to lower revenue across its business segments.

MISC’s revenue amounted to RM3.31bil in the quarter, down from RM4.28bil a year ago.

For the full FY24, MISC’s net profit stood at RM1.19bil or an EPS of 26.7 sen versus earnings of RM2.12bil or an EPS of 47.5 sen in FY23.

Revenue for FY24 slipped to RM13.24bil from RM14.27bil in FY23. MISC declared an interim dividend of 12 sen per share, going ex on March 7 and payable on March 20, 2025.

Moving forward, MISC said the outlook for liquefied natural gas or LNG carrier (LNGC) rates is expected to remain soft in 2025.

This is driven by the continued influx of new vessels and delays in additional supply from new LNG liquefaction projects.

“However, LNGC rates are expected to recover post-2026, driven by the gradual increase in LNG supply as the delayed projects become operational,” it said.

PETRONAS is scheduled to announce its financial results for FY24 on Feb 25.