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October 23, 2017 -Monday

 
  PCG POSTS STRONG FIRST HALF, BOOSTED BY SAMUR 36% REVENUE INCREASE, PAT DOUBLED, EBITDA MARGIN AT 40%

Thursday 10/08/2017



KUALA LUMPUR, Aug 10 (Bernama) -- PETRONAS Chemicals Group Berhad (PCG) announced its 2017 first half results today. The Group doubled its Profit After Tax (PAT) year-on-year, with higher volumes, boosted by the inclusion of its Sabah Ammonia Urea (SAMUR) plant, delivering increase in revenue and better EBITDA margin.
 
SAMUR which started contributing to PCG’s earnings from May this year, brings an additional 1.2 million metric tonnes of urea per annum, which adds 15% to PCG’s overall capacity. With its urea production capacity almost doubling, PCG revealed that the company is making headway in its plans to cater to the growing demand for urea by being the second largest urea producer in this region.
 
Commenting on its first half performance of the year, PCG’s Managing Director/Chief Executive Officer Datuk Sazali Hamzah said, “While this continued to be a challenging period for the industry, we have delivered resilient performance to sustain healthy margins and returns, with earnings driven by the strong momentum of our growth projects. SAMUR is a significant milestone for us and we are confident that it will continue to positively impact our bottom-line”
 
“Operational and commercial excellence remain PCG’s core priority to ensure long-term business sustainability. Importantly, the business delivered resilient EBITDA with 40% margin and sound improvements in cost efficiency. With this good performance, PCG is well positioned operationally and financially to pursue its growth agenda”, he added.
 
For the first half of the year, PCG saw a 36% increase in revenue compared to the same period in 2016, while sustaining plant utilisation (PU) rate of 94%. This increase was achieved on the back of higher sales volume, better product prices, supported by favourable foreign exchange rate. EBITDA saw a significant 47% improvement to RM3.5 billion with EBITDA margin stood at an impressive 40%. PAT doubled from RM1.2 billion to RM2.4billion.
 
PCG closed its second quarter with a revenue of RM4 billion, an increase of 24% compared to the corresponding quarter. Production volume was higher supported by additional volume from SAMUR, coupled with improved product prices which largely stemmed from the higher crude oil prices.
 
Group EBITDA jumped 26% to RM1.5 billion, contributed by higher sales volumes and favourable foreign exchange impact. EBITDA margin remained strong at 38% while PAT doubled to RM1.0 billion.
Compared to the preceding quarter, 2Q 2017 saw depressed product prices and margins. Hence, the Group’s revenue declined by 16%, and EBITDA fell 22% from RM1.9 billion despite sustained production volume. EBITDA margin followed suit but remained strong at 38%, while PAT was 26% lower at RM1.0 billion, compared to RM1.4 billion in 1Q 2017.
 
These factors have led the Group to declare a healthy 12 sen per share interim dividend, which is 5 sen higher than the interim dividend in 2016. This translates to a total dividend payout of RM960 million.
 
PCG is on track to achieve two more milestones by the end of this year, where it’s Integrated Aroma Ingredients Complex followed by Highly Reactive Polyisobutene plants in Gebeng are expected to be commissioned in the fourth quarter of 2017 while its petrochemicals projects within the Pengerang Integrated Complex (PIC) are also currently progressing as planned.
 
Sazali mentioned that PCG remains cautiously optimistic of the outlook for the second half of the year given the volatile crude oil prices and the oversupply situation in the petrochemical market. He also added that the third quarter will see PCG undertaking heavy statutory turnaround activities at several of its plants as planned, coinciding with bearish market conditions.
 
About PETRONAS Chemicals Group Berhad
 
PETRONAS Chemicals Group Berhad (PCG) is the leading integrated chemicals producer in Malaysia and one of the largest in South East Asia. It operates a number of world class production sites, which are fully vertically integrated from feedstock to downstream end-products. With a total combined production capacity of over 12 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 and other basic chemicals and derivative products. Listed on Bursa Malaysia and with 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 one of the top 10 companies in the FTSE4Good Bursa Malaysia (F4GBM) Index, out of 200 largest companies ranked by market capitalisation. It is committed to ensuring that its business practices are in line with globally recognised standards for Environment, Social & Governance (ESG) practices.
 
Further details on PCG can be found at www.petronaschemicals.com.my

Source : PETRONAS
 
FOR MORE INFORMATION, PLEASE CONTACT:
Name : Shameera Sudananthan
Tel : +(603) 2331 2266 (DL) / +(6) 012 5050 035 (M)
Email : shameera.abd@petronas.com.my

--BERNAMA

 
 
 

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