Plant utilisation of 95%, EBITDA margin at 31%
 
KUALA LUMPUR, May 24 (Bernama) -- PETRONAS Chemicals Group Berhad (PCG) posted 17% year-on-year lower revenue of RM4.1 billion in its first quarter 2019 in tandem with the overall decline in petrochemical product prices. The petrochemical sector slowed during the quarter on market uncertainties as well as lower crude oil prices and demand.  
 
Operations remain steady as PCG achieved plant utilisation of 95%, albeit lower compared to 100% in 1Q 2018 as the Group commenced the first statutory plant turnaround in 2019 as well as maintenance activities undertaken during the quarter. As a result, the Group saw lower production volume and lower sales volume accordingly.
 
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) decreased 31% year-on-year to RM1.3 billion from RM1.8 billion on lower spreads and sales volume. Profit After Tax (PAT) declined 27% year-on-year to RM813 million. EBITDA margin for the quarter declined by 6.6% to 31%.
 
Commenting on the performance, Managing Director/Chief Executive Officer, Datuk Sazali Hamzah said, “While the market remains competitive, we expect the demand for petrochemical products to grow in tandem with stable GDP growth within Asia Pacific region. Our immediate focus is to optimise production, manage costs and ensure timely project delivery.”
 
Speaking on the progress of PCG’s growth projects, “The new plants at the Pengerang Integrated Complex (PIC) are at 98.3% completion as of April 2019. We remain on track to commence commercial operations in the fourth quarter of the year,” he said.
 
PCG recently acquired Da Vinci Group B.V., a Netherlands-based company with global operations involving own-brand reselling, formulating and manufacturing of silicones, lube oil additives and chemicals. This represents PCG’s first foray into specialty chemicals via inorganic growth.
 
The acquisition will indeed accelerate the realisation of PCG’s vision to diversify into differentiated and specialty chemicals.
  
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 CHEMICALS GROUP BERHAD
 
FOR MORE INFORMATION, PLEASE CONTACT:  
Name: Nur Akmal Ahmad
Media Relations
Corporate Affairs & Administration Department
PETRONAS CHEMICALS GROUP BERHAD (PCG)
Tel: +(603) 2331 5000 (GL), +(603) 2392 7356 (DL)
Fax: +(603) 2331 3008
Email: nurakmal.ahmad@petronas.com
 
--BERNAMA