26 · Feb · 2020
Strong Operating Performance And Growing Portfolio
Kuala Lumpur, 26 February – The year 2019 saw PETRONAS Chemicals Group Berhad (PCG) continue to build on its operational and commercial excellence, against the backdrop of a challenging market environment. The Group delivered on its investments in Pengerang Integrated Complex and entered the specialty chemicals business through an acquisition.
Key highlights YTD 2019 vs YTD 2018
- PCG sustained high plant reliability and recorded plant utilisation rate exceeding world class benchmark at 92%, despite the heavy turnaround and maintenance activities across the Group. This resulted in a comparable level of production volume.
- Revenue, however, declined 16% year-on-year weighed down by drop in petrochemical product prices following continued industry downtrend which persisted throughout 2019.
- Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) margin dipped 8% year-on year to 27%, compressed by the reduced product prices, partially offset by stronger US Dollar against the Ringgit Malaysia.
- Profitability for the year was impacted as EBITDA and Profit After Tax (PAT) declined 36% and 43% year-on-year to RM4.4 billion and RM2.8 billion, respectively.
- PCG declared a second interim dividend for the year of 7 sen per ordinary share amounting to RM560 million, which will be payable in March 2020. This is in addition to the first interim dividend of 11 sen per share which was paid to investors in September 2019. For FY2019, the total dividend amounted to 18 sen or RM1,440 million, translating into a dividend payout ratio of 51.2% of Profit After Tax and Non-Controlling Interests (PATANCI).
Commenting on the results, Managing Director/Chief Executive Officer, Datuk Sazali Hamzah said, “We closed 2019 with a resilient performance. In addition to sustaining plant utilisation rate at world class benchmark, we also delivered high level of service reliability to our customers. Overall, we successfully achieved operational and commercial excellence while prudently managing our cost in a challenging and uncertain market environment.”
“Our key focus areas in 2020 include the ramp-up and commercialisation of our chemical plants within the Pengerang Integrated Complex which are currently undergoing performance test runs. To date, we have achieved significant milestones with the first production of polyethylene, polypropylene and ethylene glycols,” added Datuk Sazali.
“The petrochemical product prices are expected to stabilise in the near term. However, we remain cautious amidst market uncertainties in view of the on-going US-China trade disputes, slowing GDP growth and the Covid-19 outbreak. We expect to navigate through the current business environment given our strong operational and commercial excellence,” concluded Datuk Sazali.