Integrated chemicals and lubricants distributor, Samchem Holdings Berhad ("Samchem" or the "Group"), has released its financial results for the second quarter of 2024, ending 30 June 2024.

For 2Q2024, Samchem's revenue rose by 8% to RM298.4 million, up from RM276.2 million in the same period last year (2Q2023). Despite subdued average selling prices (ASPs), the increase in revenue was driven by higher sales volumes. The Group's net profit for the quarter was RM6.2 million, marking a 3% rise from RM6.0 million in 2Q2023. Additionally, Samchem has declared a second interim dividend of 0.5 sen per ordinary share.

Ng Thin Poh, Executive Chairman of Samchem, remarked on the quarter's performance: "The second quarter of 2024 saw softer activity levels, impacted by two festive holidays in Malaysia and Indonesia. We continued to face cautious market sentiments due to China's slower-than-expected economic recovery and concerns about a potential US recession. However, manufacturing activities in our core markets are stabilising, with improved chemical demand from the construction and oil & gas sectors.

To adapt to the current market environment, we are refining our product and service offerings. Our strategy includes targeting new industries within our key markets, expanding our product range, and enhancing value-added services. These steps are aimed at increasing our market share as we anticipate a recovery in demand.

We view the ongoing consolidation in the global petrochemical industry positively, as it may support chemical prices and improve our margins. Additionally, this trend could encourage manufacturers to outsource distribution, presenting growth opportunities for distributors like Samchem. With our expanded infrastructure in Malaysia and Vietnam, we are well-positioned to seize these opportunities," he added.