Resilient Performance In 2020, PCG Poised For Sustainable Growth

Kuala Lumpur, 22 April - PETRONAS Chemicals Group Berhad (PCG) today held its 23rd annual general meeting (AGM) virtually to present the Company’s performance to its shareholders for the financial year ended 31 December 2020. The AGM was chaired by PCG Chairman, Datuk Md Arif Mahmood, who is also PETRONAS’ Executive Vice President & CEO Downstream. Also, in attendance were all the Board members, PCG Managing Director/Chief Executive Officer, Datuk Sazali Hamzah and Chief Financial Officer, Mohd Azli Ishak.

During the virtual AGM, Datuk Sazali shared the Company’s performance, growth plans, sustainability strategy and outlook for 2021.

2020 was an extremely challenging year. The COVID-19 pandemic severely impacted global economy amid unresolved US-China trade war, compounded by the OPEC+ fallout which led to the collapse of crude oil price. Despite these challenges, the Group remained focused on plant operations and safety, sustaining best-in-class plant utilisation rate at 94%, well above the world-class standard of 90% and maintained an excellent safety record. The Group achieved a record-breaking production volume of 10.7 million tonne per annum (tpa) and attained world-class level of order fulfillment reliability at 97%, clearly demonstrating PCG’s agility and resilience.

“Our achievement reflects our ability to capitalise on our strengths. We have long-established strong fundamentals, capable of withstanding many challenges. With leading technologies, integrated facilities, logistical advantages, diverse portfolio, regional footprint and close customer relationship, we remained resilient. As a result, PCG closed 2020 with a Profit after Tax of RM1.6 billion. In line with the Group’s dividend policy, for FY2020, we declared a total dividend of 12 sen or RM960 million, translating into a dividend payout ratio of 59% of Profit after Tax and Non-Controlling Interests (PATANCI),” said Datuk Sazali.

Elaborating on PCG’s growth strategy, he added, “We are focused on pursuing our two-pronged strategy, namely, to sustain our strength in basic petrochemicals and diversify into derivatives, specialty chemicals and solutions.”

The growth in specialty chemicals via Da Vinci Group (DVG) is progressing as planned. DVG, which PCG acquired in 2019, is expanding its capacity with the construction of a silicone blending plant in Gebeng, Pahang and a new facility for lubricant additives and chemicals in Echt, Netherlands. Upon completion of these facilities, PCG will have wider access to high-growth end markets such as personal care, automotive and healthcare. PCG’s growth journey is further accelerated with the formation of a joint-venture partnership with PT AKR to distribute chemicals across Indonesia. This partnership provides greater market access in Indonesia and enables PCG to serve its customers more effectively.

"Our Pengerang Integrated Complex (PIC) provides another platform to strengthen our position in both basic and specialty chemicals. We are gearing for full start-up in the second half of 2021. With PIC, we expect to increase our production capacity from 12.8 million up to 14.6 million tonne per annum,” added Datuk Sazali.

Commenting on PCG’s sustainability strategy, Datuk Sazali said, “We see sustainability as a licence to operate. We focus on the 3Ps; People, Planet and Profit. On People, we will continue to invest in staff and community well-being. On Planet, our business will uphold environmental stewardship and resource efficiency and finally on Profit, we will ensure our business is sustained and continue to grow. Our growth will also include green initiatives such as investment in the world’s first bio-Mono Ethylene Glycol (MEG) pilot plant via direct conversion from palm biomass utilising in-house technology.”

“2020 closed with the positive development of the COVID-19 vaccine, along with indications of an economic recovery. Specifically, for the oil and chemicals industries, prices have shown improvements towards the end of 2020. As of now, market has started to recover, although its stability remains uncertain. While we are optimistic of the future, we remain cautious of potential disruptions.We will carry on with our operational and commercial excellence, cost optimisation efforts and pursue growth opportunities in 2021. We are confident that we will be able to navigate a post-pandemic world with stronger fundamentals, hence creating more value for all our stakeholders,” concluded Datuk Sazali.

Digital versions of PCG’s 2020 Reports; Integrated Report, Sustainability Report as well as the Governance and Financial Report are available on PCG’s website at https://www.petronas.com/pcg/media/reports and Bursa Malaysia’s website at www.bursamalaysia.com under Company’s announcements.

For more information, please contact:

Yogeswari Thangavelu
Media Relations, Corporate Affairs & Administration Department
PETRONAS CHEMICALS GROUP BERHAD (PCG)
E : yogeswari.thangavel@petronas.com