13 · Nov · 2019
PCG Posts 9-month PAT of RM2.5 Billion Healthy EBTIDA Margin at 31%, Plant Utilisation Stable at 93%
Kuala Lumpur, 13 November – PETRONAS Chemicals Group Berhad (PCG) registered a nine-month revenue of RM12.1 billion for the period ended 30 September 2019.
The Group’s operations remained stable and efficient amid heavy turnaround and maintenance activities at several major plants.
Key highlights YTD 3Q2019 vs YTD 3Q2018
- Stable operations as the Group’s plant utilisation improved to 93%, compared to 91% in 2018, resulting in 2% year-on-year increase in production volume.
- Healthy EBITDA margin at 31% for the period ended 30 September 2019.
- Successful completion of Netherlands-based Da Vinci Group B.V. acquisition will expedite PCG’s aim to expand into differentiated and specialty chemicals
- Revenue dipped 16% year-on-year largely due to overall decline in petrochemical product prices. The sector has been on a downtrend since late 2018 due to lower crude oil prices, slowed demand growth intensified by global industrial downturn.
- Profitability was similarly impacted as Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) and Profit After Tax (PAT) declined 30% and 36% year-on-year to RM3.7 billion and RM2.5 billion, respectively.
Commenting on the results, Managing Director/Chief Executive Officer, Datuk Sazali Hamzah said, “The results demonstrate our resilience and continued focus to deliver value through effective turnaround management and high plant reliability resulting in higher utilisation rate for the period, which exceeded world class operating benchmark. On the commercial front, we optimised our cost-to-serve, and further increased our market share by shifting more volume into the ASEAN region.
The petrochemical product prices have stabilised but market outlook remains soft due to lower global GDP growth and expected additional capacities coming onstream, resulting in a long market. However, market fundamentals remain strong in the Asia Pacific region.
Given our robust business model and competitive position, we will continue sustaining the business and creating value through existing operations while rigorously pursuing our growth agenda.”
Datuk Sazali added, “Our new plants at the Pengerang Integrated Complex (PIC) are nearing completion and we remain on track to commence commercial operations by the end of the year. We are now in the process of stabilising the plants to deliver additional capacity of a new product range to meet our customers’ requirements.”
In September, PCG completed the acquisition of Da Vinci Group. Datuk Sazali concluded, “Da Vinci provides a compelling entry point for PCG to grow into silicones business and enhance our competitive position in attractive end-markets such as personal care, construction, paints and coatings, electronics, automotive and healthcare, particularly in the Asia Pacific region.”