Page 7 - AsianOil Week 33

AsianOil SOUTHEAST ASIA AsianOil

The lockdown pressure showed up in sub- Gas. The unit reported an 8.8% y/y increase
sidiary Petronas Chemicals’ financial results in its second-quarter profit to MYR547.1mn
this week, with the company noting that its sec- ($131.1mn) from MYR502.9mn ($120.5mn)
ond-quarter profit tumbled 83.33% year on year a year earlier. Revenue, meanwhile,
to MYR186mn ($44.6mn) from MYR1.12bn expanded by 1.4% y/y to MYR1.4bn
($268.6mn) last year, owing to lower oil prod- ($335.5mn) from MYR1.38bn ($330.7mn)
uct prices and sales volume. The April-June fig- a year earlier.
ure was also down 63% from the first quarter’s Petronas Gas attributed the stronger profit
MYR506mn ($121.3mn). figure on lower operating costs, an unrealised
The company said its revenue shrank foreign exchange gain and a higher share of prof-
to MYR3.18bn ($762.6mn) in the sec- its from a joint venture.
ond quarter of this year from MYR4.34bn First-half profits eased 9.8% y/y to
($1.04bn) in 2019. The figure also trailed the MYR915.22mn ($219.3mn) from MYR1.02bn
MYR3.89bn ($932.9mn) reported in Janu- ($244.4mn), while revenue expanded by 1.8%
ary-March this year. y/y to MYR2.8bn ($671mn) from MYR2.75bn
PetChem’s first-half profit collapsed to ($659mn).
MYR692mn ($165.8mn) from MYR1.92bn The company said it would keep its capi-
($460.1mn), while revenue slid to tal expenditure commitments for approved
MYR7.07bn ($1.69bn) from MYR8.47bn projects in place in addition to spending on
($2.03bn) a year earlier. LNG bunkering and truck loading at regasifi-
PetChem managing director and CEO Sazali cation terminals, as well as a new nitrogen unit
Hamzah said: “The domino effect of COVID-19 planned in 2021.
brought down petrochemical prices to historical “To-date, the group has spent MYR434mn
lows, particularly in April and May.” [$104mn] on capital expenditure, with the total
One area of Petronas’ operations that expected to be around MYR1bn [$239.6mn] by
did not feel the pinch quite as much was the end-2020,” Petronas Gas managing director and
company’s natural gas division – Petronas CEO Kamal Bahrin said.™

PTT looks to greener future

FINANCE & THAILAND’S state-owned PTT is ramping up said, flagging up interest in also developing high-
INVESTMENT its commitment to renewable power generation tech life sciences products.
amid a downturn in its oil and gas business. PTT also wants to expand its renewable
The company has warned that its revenue power generation portfolio from 500 MW to
could drop by more than 10% this year owing 8,000 MW, with Rerkpiboon saying: “The com-
to coronavirus’ (COVID-19) impact on global pany is conducting a feasibility study of solar
oil prices. power projects domestically and in Taiwan and
PTT posted a THB1.5bn ($47.67mn) loss India”.
in the first quarter, before bouncing back to Rerkpiboon flagged up the company’s
a THB12bn ($381.5mn) profit in the second plans to buy stakes in renewable compa-
quarter. The company attributed the April-June nies in both countries to the Asian Nikkei
result, which was still down 53.5% on last year’s Review on August 18. The move would
figure, to the appreciation of the baht as well as build upon PPT unit Global Power Synergy
lower tax costs. Co.’s (GPSC) 2018 acquisition of 69.11% in
The Bangkok Post quoted PTT president and independent Thai power producer Glow for
CEO Auttapol Rerkpiboon on August 19 as say- THB93bn ($2.96bn).
ing the collapse in international oil prices had “Normally, we expand business via GPSC.
led to a THB35bn ($1.11bn) inventory loss in But GPSC has recently acquired Glow Energy. So
the first quarter. we have to think about a new business model to
He said: “The stock loss followed a sharp drop allow PTT or its subsidiary to do M&As appro-
in oil prices and petrochemical prices, which priately,” Rerkpiboon said.
affected energy business.” While Rerkpiboon declined to name the
PTT is developing a long-term strategy, how- companies that PTT was weighing up, the Nik-
ever, that will see it invest THB50.3bn ($1.6bn) kei quoted unnamed sources as saying the firm
this year in expansion efforts. was in talks to acquire a 48% stake in independ-
“We’re seeking new investment in such busi- ent Indian renewable power producer ReNew
nesses as logistics and lifestyles,” Rerkpiboon Power for around $500mn.™

Week 33 20•August•2020 www. NEWSBASE .com P7