PETRONAS Chemicals Group Berhad

Integrated Report 2022

Go To Downloads
01

KEY HIGHLIGHTS

NATURAL
CAPITAL

GHG Emissions
Reduction*

More than

108,000

tonne CO2e

* Cumulative emissions reduced since 2019

MANUFACTURED CAPITAL

Production Volume:

10.4

million tpa

2021: RM 10.4 million tpa

HUMAN
CAPITAL

Women Representation in Senior Management:

29%

2021: 18%

INTELLECTUAL CAPITAL

Total No. of New Products:

15

SOCIAL & RELATIONSHIP CAPITAL

Social Impact Initiatives Reached:

>300,000

people

2021: ~295,000 people

FINANCIAL CAPITAL

Revenue:

RM29.0

billion

2021*: RM 23.0 billion

*Certain financial information and its corresponding financial ratios have been restated in line with amendments to MFRS 116 Property, Plant and Equipment

INTELLECTUAL CAPITAL

Total No. of New Products:

15

SOCIAL & RELATIONSHIP CAPITAL

Social Impact Initiatives Reached:

>300,000

people

2021: ~295,000 people

FINANCIAL CAPITAL

Revenue:

RM29.0

billion

2021*: RM 23.0 billion

*Certain financial information and its corresponding financial ratios have been restated in line with amendments to MFRS 116 Property, Plant and Equipment

LEADERSHIP MESSAGES

02
  • CHAIRMAN’S STATEMENT

    DELIVERING OUR PURPOSE

    Dear Stakeholders,

    PCG has demonstrated resilience and strength in 2022 by successfully navigating challenges, advancing strategies and ultimately delivering value to our stakeholders. We have upheld our commitment to Operational Excellence and Commercial Excellence, both crucial ingredients that are vital to our growth journey.

    Datuk Ir. (Dr.) Abdul Rahim Hashim

    Chairman

    Released our first standalone
    Taskforce on Climate-Related Financial Disclosures (TCFD) Report

    Commenced
    Scope 3 emissions baselining exercise

    Maintained Top
    10 %

    position

    on the Dow Jones Sustainability Indices (DJSI) for Chemicals Industry

    Maintained Top
    10 %

    position

    on the Dow Jones Sustainability Indices (DJSI) for Chemicals Industry

    Released our first standalone
    Taskforce on Climate-Related Financial Disclosures (TCFD) Report

    Commenced
    Scope 3 emissions baselining exercise

    DELIVERING OUR PURPOSE

    Dear Stakeholders,

    PCG has demonstrated resilience and strength in 2022 by successfully navigating challenges, advancing strategies and ultimately delivering value to our stakeholders. We have upheld our commitment to Operational Excellence and Commercial Excellence, both crucial ingredients that are vital to our growth journey.

  • MD/CEO’S REVIEW

    TAKING ACTION TODAY,
    BUILDING FOR TOMORROW

    Dear Stakeholders,

    I am pleased to report that PCG has produced a commendable set of results as we remained resolute in delivering our value creation objectives while charting sustainable growth trajectories.

    Ir. Mohd Yusri Mohamed Yusof

    Managing Director/Chief Executive Officer (MD/CEO)

    10.4

    Production Volume
    (million tpa)

    8.3

    Sales Volume
    (million tpa)

    0.17

    World-Class Safety Performance Lost Time Injury Frequency
    (LTIF)

    10.4

    Production Volume
    (million tpa)

    8.3

    Sales Volume
    (million tpa)

    0.17

    World-Class Safety Performance Lost Time Injury Frequency
    (LTIF)

    TAKING ACTION TODAY,
    BUILDING FOR TOMORROW

    Dear Stakeholders,

    I am pleased to report that PCG has produced a commendable set of results as we remained resolute in delivering our value creation objectives while charting sustainable growth trajectories.

  • CFO’S REVIEW

    STRENGTHENING OUR
    RESILIENCE, DRIVING VALUE

    Dear Stakeholders,

    Amid a volatile market, PCG continued to deliver a strong set of financial results in the year under review, as we continued to make good on our promises to deliver value to our stakeholders.

    Mohd Azli Ishak

    Chief Financial Officer

    Profit After Tax

    RM 6.3

    BILLION

    Liquidity with CFFO

    RM 8.0

    BILLION

    Dividend Payout Ratio

    51.9 %

    Profit After Tax

    RM 6.3

    BILLION

    Liquidity with CFFO

    RM 8.0

    BILLION

    Dividend Payout Ratio

    51.9 %

    STRENGTHENING OUR
    RESILIENCE, DRIVING VALUE

    Dear Stakeholders,

    Amid a volatile market, PCG continued to deliver a strong set of financial results in the year under review, as we continued to make good on our promises to deliver value to our stakeholders.

    03

    SEGMENTAL REVIEW

    Download This Section

    Basic Chemicals & Derivatives

    In the year under review, PCG’s basic chemicals segment comprising Olefins & Derivatives (O&D) and Fertilisers & Methanol (F&M) maintained its strong commitment to Operational and Commercial Excellence.

    Overall Production Volume

    3,577KMT

    2021: 3,910 KMT

    Overall Sales Volume

    2,879KMT

    2021: 3,056 KMT

    Plant Utilisation

    91.4%

    2021: 99.6%

    Overall Production Volume

    6,390KMT

    2021: 6,478 KMT

    Overall Sales Volume

    5,184KMT

    2021: 5,145 KMT

    Plant Utilisation

    87.5%

    2021: 88.7%

    Specialty Chemicals

    In the year under review, PCG’s specialties segment has made significant headway in its growth journey with the landmark acquisition of Perstorp Group, a global leader in sustainable specialty chemicals. The acquisition is in line with the second prong of PCG’s two-pronged strategy to establish a key platform to diversify into the specialty chemicals industry. In addition, our silicone and lubricant additives business through BRB Group has also grown strongly and delivered its highest EBITDA to date.

    Download This Section

    SUSTAINABILITY SCORECARD

    Sustainability is core to our business management and operations, as we seek to create value for people and planet. We are committed to support transitioning to a low-carbon economy through our Net Zero Carbon Emissions (NZCE) 2050 Roadmap.

    Download This Section

    ECONOMIC

    ENVIRONMENTAL

    SOCIAL

    GHG Emissions

    7.05
    million tonne CO2e

    2021: 7.00 million tonne CO2e

    Air Emissions (NOx)

    18.51 kilotonne

    2021: 25.07 kilotonne

    Energy Intensity

    17.08 GJ/tonne

    2021: 15.76 GJ/tonne

    ENVIRONMENTAL

    SOCIAL

    ECONOMIC

    Social Impact Initiatives reached over

    300,000
    people

    2021: ~295,000 people

    World-Class Safety Performance

    0.17
    Lost Time Injury Frequency (LTIF)

    compared to oil & gas industry benchmark of 0.22

    2021: 8.2 million tpa

    Employee Training & Development

    RM24.4
    million invested

    2021: RM6.9 million invested

    SOCIAL

    ECONOMIC

    ENVIRONMENTAL

    Production Volume

    10.4
    million tpa

    2021: 10.4 million tpa

    Sales Volume

    8.3 million tpa

    2021: 8.2 million tpa

    70 %

    total procurement spending for Malaysian business sourced from local suppliers

    2021: 15.76 GJ/tonne

    04

    How WE CREATE VALUE

    Click To Read More

    • Capital Inputs

      Natural

      Manufactured

      Human

      Intellectual

      Social & Relationships

      Financial

    • Business activities

      Commercial

      Manufacturing

    • OPERATING
      ENVIRONMENT

      Economic Recovery

      Energy, Materials & Feedstock Price Uncertainties

      Intensified Sustainability

      Supply Chain Disruptions

      Accelerated Digitalisation

    • SUSTAINABILITY AT
      THE CORE

      Economic

      Business Sustenance & Green Initiatives

      ENVIRONMENTAL

      Environmental Stewardship & Resource Efficiency

      Social

      Social Responsibility

    • OUTPUTS

      PRODUCTION
      &
      SALES

      INNOVATION & TECHNOLOGY

      ENVIRONMENTAL FOOTPRINT

    • OUTCOMES

      Natural

      Manufactured

      Human

      Intellectual

      Social & Relationships

      Financial

      Copyright © 2023 PETRONAS Chemicals Group Berhad 199801003704 (459830-K). All rights reserved

      CAPITAL INPUTS

      Natural

      • Natural gas:
        • Methane 109 million mmbtu
        • Ethane 1,243 ktpa
        • Propane 801 ktpa
        • Butane 272 ktpa
        • Heavy Naptha 607 ktpa

      Manufactured

      • 30 production plants owned
      • Subsidiaries and representative offices in 29 countries

      Human

      • 6,288 total number of employees
      • RM24.4 million invested in employee training & development

      Intellectual

      • 7 Research and Development (R&D) laboratories
      • 631 proprietary chemical formulations

      social & relationships

      • 1,738 suppliers
      • 1,683 volunteer hours for community engagements

      Financial

      As at 1 January 2021

      • RM34.9 billion in shareholders’ equity
      • RM16.4 billion in cash and cash equivalents
      • RM7.0 billion in free cash flow

      BUSINESS ACTIVITIES

      MANUFACTURING

      Our 19 world-class chemical manufacturing sites worldwide produce a range of commodities and specialty chemicals that are used by customers in different sectors – from agriculture to automotive, and packaging to personal care – to manufacture items that enhance our daily life.

      COMMERCIAL

      We market and sell integrated chemical solutions, including specialty products and chemical derivatives of the future. Through innovative products and solutions, we deliver best-in-class commercial value to our customers globally.

      SUSTAINABILITY AT THE CORE

      Economic

      Business Sustenance & Green Initiatives

      Operational Excellence

      Commercial Excellence

      Growth Delivery Excellence

      Environment

      Environment Stewardship & Resource Efficiency

      Net Zero Carbon Emissions

      Environmental Stewardship

      Biodiversity Conservation

      Social

      Social
      Responsibility

      Human Rights

      Employee Well-being & Talent Development

      Social Impact

      Governance

      Material Matters

      Innovation & Product Stewardship

      Supply Chain Management

      Strategy Purpose & Financial Resilience

      Plant Operations

      Cybersecurity & Digitalisation

      Climate Change

      Environmental Stewardship

      New Plastics Economy (NPE)

      Human Rights

      Talent Development

      Workplace and Occupational Safety & Health (OSH)

      Community Engagement

      Corporate Governance

      OUTPUTS

      PRODUCTION & SALES

      • 10.4 million tpa production volume
      • 8.3 million tpa sales volume
      • 89% plant utilisation

      ENVIRONMENTAL FOOTPRINT

      • 0.70 tonne CO e/tonne GHG emissions intensity
      • 29.4 kilotonne hazardous waste generation
      • 0.02 tonne/kilotonne wastewater discharge intensity

      INNOVATION & TECHNOLOGY

      • 15 new products
      • 12 co-created solutions
      • 283 technical solutions

      OUTCOMES

      Natural

      • More than 108,000 tonne CO2e reduced since 2019
      • 17.08 GJ/tonne energy intensity

      Manufactured

      • RM27.2 billion worth of property, plant and equipment

      Human

      • Zero fatalities or major safety incidents
      • 84% Employee Engagement Score
      • 10.2 average training man-days per employee

      Intellectual

      • 13 product stewardship & technical seminars

      social & relationships

      • 70% total procurement spending for Malaysian business sourced from local suppliers
      • Over 300,000 community members reached

      Financial

      As at 1 January 2021

      • RM8.1 billion in EBITDA
      • RM3.3 billion dividend payout