Media Release

25 · Nov · 2022
PCG Delivers RM1.9 Billion PAT In 3Q 2022
  • EBITDA Margin of 28%
  • Plant Utilisation Rate of 97%

 

Kuala Lumpur, 25 November 2022– PETRONAS Chemicals Group Berhad (PCG) continues to record strong earnings for the Financial Year Ending 31 December 2022 (FY2022). Third quarter (3Q 2022) revenue grew 22% year-on-year on the back of higher average product prices amid stronger US Dollar, coupled with improved production and sales volumes. Profit After Tax (PAT), however, declined 3% year-on-year to RM1.9 billion, due to softer margins and lower contribution from joint ventures and associates. 

 

On a cumulative 9-month basis, the Group’s revenue and PAT, increased by 26% and 11%, to RM20.2 billion and RM5.8 billion respectively, against the same period last year. 

 

Key highlights 3Q 2022 vs 3Q 2021 

 

  • Revenue increased by 22% to RM7.0 billion (3Q 2021: RM5.8 billion) driven by higher product prices amid stronger USD, coupled with higher sales volume. 
  • Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) declined by 7% to RM2.0 billion (3Q 2021: RM2.1 billion) due to lower product spreads. EBITDA margin declined to 28% during the quarter (3Q 2021: 37%). 
  • Profit after Tax (PAT) declined 3% to RM1.9 billion (3Q 2021: RM2.0 billion) in line with softer margins and lower contribution from joint ventures and associates. 
  • Plant utilisation rate improved to 97% (3Q 2021: 94%) contributing to higher production and sales volumes. 

 

Managing Director/Chief Executive Officer, Ir. Mohd Yusri Mohamed Yusof commented, “Product prices remained elevated during the quarter supported by high crude oil and energy prices, though lower than 2Q 2022. Production and sales volumes improved this quarter with our plant utilisation rate improved to 97% from 72% in 2Q 2022”. Approximately 70% of PCG’s production volume is exported within the Asia Pacific region, of which, Southeast Asia make up about 40%. Yusri noted that, “While the stronger US Dollar boosted our revenue, we faced margin pressure as a result of higher operating costs.” 

 

Commenting on the market, “We are seeing softened demand, particularly for polymer products, as high cost of energy persists amid extended COVID-19 lockdowns across China. Having declined to 2021 levels in recent weeks, the prices of olefins and derivatives are expected to moderate further until the easing of restrictions in China. However, urea prices are expected to remain high between USD550/metric tonne to USD700/metric tonne as energy prices remain elevated due to the ongoing Russia-Ukraine war.”  

 

Updating on its growth initiatives, Yusri said “In October, we welcomed Swedish-based Perstorp Holdings AB (Perstorp) into the PCG family. We look forward to preserving and growing the value of Perstorp Group, focusing on delivering existing business plan targets while maximising the synergies with PCG”. A well-established specialty chemicals company with presence in Europe, USA and Asia Pacific, Perstorp is a strategic fit in PCG’s specialty chemicals expansion and decarbonisation plans. 

 

On the Pengerang Integrated Complex (PIC), “The fire incident that occurred in late October is not within our petrochemical facilities and currently no damage has been found.  However, due to the integrated nature of PIC, the petrochemical facilities have been temporarily shut down and will resume its operations once all considerations and requirements are met,” he concluded. 

 

 

 

About PETRONAS Chemicals Group Berhad

 

PETRONAS Chemicals Group Berhad (PCG) is the leading integrated chemicals producer in Malaysia and one of the largest in Southeast Asia. It operates a number of world-class production sites in Malaysia, Asia-Pacific, Europe and North America. With a total combined production capacity of 15.4 million metric tons per annum (mtpa), it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol, other basic chemicals, derivative products and specialty chemicals.  

 

Listed on Bursa Malaysia with more than three decades of experience in the chemicals industry, PCG is established as part of the PETRONAS Group to maximise value from Malaysia’s natural gas resources.  

 

PCG is committed to ensuring that its business practices are in line with globally recognised standards for Economic, Environment, Social & Governance (EESG) practices. It is currently listed in the FTSE4Good Bursa Malaysia (F4GBM) Index and the Dow Jones Sustainability™ World Index. 

 

Further details on PCG can be found at www.petronaschemicals.com.my

 

For more information, please contact: 

 

Yogeswari Thangavelu

Media Relations, Corporate Affairs & Administration Department
PETRONAS CHEMICALS GROUP BERHAD (PCG)

 

T: +(603) 2331 5000 (GL), +(603) 23926434 (DL) M : (6) 017 2000919