Latest news with #RM7.5mil
The Star
26-05-2025
- Business
- The Star
KPS strengthens growth initiatives amid challenging market conditions
KPS managing director and group chief executive officer Ahmad Fariz Hassan KUALA LUMPUR: Kumpulan Perangsang Selangor Bhd (KPS) plans to step up its sales development efforts, aiming to expand its customer base further and diversify revenue streams across key markets. 'Capital expenditure will be allocated to enhance manufacturing capacity and capabilities to ensure operational readiness to meet evolving customer demands and scale future growth,' it said in a statement. Managing director and group chief executive officer Ahmad Fariz Hassan said the initiatives collectively reflected KPS' commitment to sustainable value creation, operational discipline, and strategic agility in navigating both opportunities and challenges in the quarters ahead. 'To this effect, we are also actively reviewing our product mix to prioritise higher-margin offerings and exploring price adjustments where practicable. These actions will also be essential to capturing growth opportunities,' he added. In the first quarter ended March 31, KPS posted a lower net profit of RM7.5mil, or earnings per share of 1.40 sen compared with RM48.5mil, or 9.00 in the year-ago quarter. Revenue for the quarter dipped to RM243.5mil against RM262.1mil achieved last year. KPS said the operating environment during the quarter remained challenging, marked by a sluggish demand recovery and persistently high input costs. Global economic activity continued to lose momentum, weighed down by shifting U.S. trade policies and subdued consumer sentiment. 'For the group, however, it was selectively opportunistic: Strong orders from new projects in consumer electronics and medical divisions had furthered growth at Toyoplas Manufacturing (M) Sdn Bhd and MDS Advance Sdn Bhd, respectively. On the contrary, Century Bond Bhd (CCB) faced lower offtake, demand volatility, and further price competition,' it said. 'While we acknowledge that the performance across our subsidiaries has been mixed in the past quarters, with some areas facing headwinds, we are proactively implementing measures to address these challenges. 'Operationally, we have undertaken further consolidation exercises and business rationalisation activities to streamline production planning, as with the case of CBB. These structural changes are aimed at restoring competitiveness and shaping long-term profitability.'
The Star
20-05-2025
- Business
- The Star
PETRONAS Chemicals dragged by O&D segment amid headwinds
KUALA LUMPUR: PETRONAS Chemicals Group sustained its operational performance with a plant utilisation rate of 94% in the first quarter of 2025 (1Q25), but its financial bottomline was weighed down by its olefins and derivatives (O&D) segment amid a challenging market landscape. "To maintain our resilience and competitiveness amid the current industry downtrun, we remain focused on driving excellence. "Our unwavering comitment to safe and efficient operations across all facilities continue as we are currently undertaking repair and maintenance activities at several O&D and fertilisers and methanol (F&M) plants," said PETRONAS Chemicals managing director and CEO Mazuin Ismail. He added that the group is closely monitoring the developments with regards to the US tariffs, and assessing their broader implications on overall market dynamics. During the quarter under review, the petrochemicals group recorded a RM18mil net loss, on the back of revenue of RM7.66mil, which compares to a net profit of RM668mil and revenue of RM7.5mil in the year-ago quarter. The group said in a statement the O&D business had been affected by a utilities supply disruption in Kertih as well as reduced production in Pengerang Petrochemicals Company Sdn Bhd (PPC) due to feedstock unavailability. "These external issues, combined with the limited uplift in product prices amid industry oversupply, resulted in the O&D segment recording a 4% decrease in quarterly revenue to RM3.5bil," it said. The segment subsequently reported a loss before interest, tax, depreciation and amortisation (LBITDA) of RM43mil, primarly owing to lower contributions from PPC - mainly due to lower plant utilisation rate and unrealised foreign exchange loss n revaluation of payables. Meanwhile, the group's fertilisers and methanol (F&M) segment saw an improvement in sales and earnings due to stronger product prices, which offset a slight decline in sales volume. "Tight global supply and robust seasonal demand lead to increase in prices of approximately 13% and 5% for urea and methanol, respectively." The segment's quarterly revenue rose slightly to RM2.5bil while earnings before interest, tax, depreciation and amortisation (Ebitda) gained 22% quarter-on-quarter (q-o-q) to RM892mil, driven by improved product spreads. In the specialities segment, revenue rose 19% (q-o-q) to RM1.6bil due to higher sales volumes. Ebitda improved to RM52mil on stronger contribution margins and increased sales volume.
