15 · Aug · 2018
PCG Reports 20% Revenue Growth in 2Q 2018 EBITDA Margin at 38%, Plant Utilisation 95%
Kuala Lumpur, 15 August - PETRONAS Chemicals Group Berhad (PCG) released its Second Quarter (2QFY2018) financial results today, posting a strong set of numbers, on higher sales volume coupled with favourable market conditions.
In 2QFY2018, the Group recorded a 20% increase in revenue of RM4.7 billion from RM4.0 billion in 2QFY2017, mainly due to higher plant utilisation rate which resulted in higher production and sales volumes. Revenue growth was further supported by improved product prices which moved in tandem with higher crude oil prices. PCG's Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) rose 19% from RM1.5 billion to RM1.8 billion, while EBITDA margin was maintained at 38%. On account of higher contribution from our joint venture and associate companies, and lower tax expense, Profit After Tax (PAT) surged 35% to RM1.4 billion from RMI.O billion.
For the first half of 2018, the Group's revenue grew by 12% compared to IHFY2017 with higher sales volume and improved product prices. EBITDA rose 5% to RM3.7 billion and PAT saw a 3% improvement to RM2.5 billion.
The strong performance has led the Group to declare a healthy 14 sen per share interim dividend for the financial year ending 31 December 2018. This translates to a total dividend payout of RM1,120 million.
Commenting on the quarter's performance, PCG's Managing Director/Chief Executive Officer, Datuk Sazali Hamzah said, "This year is another heavy turnaround year for PCG. We completed one major turnaround in the first half with another four to go in the second half of the year. We have successfully achieved plant utilisation rate of 95% in 2QFY2018 and will remain focused in sustaining plant utilisation rate of above 90% for the year to deliver a solid performance for 2018."
On the market outlook for the year, Sazali said "The chemicals market is expected to be stable in second half of the year supported by strong demand in the Asia Pacific region particularly ASEAN and China."
In respect of PCG's growth projects, Sazali said 'I l am pleased with the progress at the Pengerang Integrated Complex (PIC) which is at 85.6% overall completion as of July 2018. The pursuit of business readiness for our petrochemical projects in PIC will remain our main focus this year along with our operational and commercial excellence.'
