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February 27, 2021 -Saturday

 
  PCG CLOSES 2020 WITH RECORD PRODUCTION, REGISTERS RM1.6 BILLION IN PAT

Tuesday 23/02/2021



• Solid operational excellence, leading to plant utilisation of 94%
• EBITDA margin at 25%
• Declares second interim dividend of RM560 million
 

KUALA LUMPUR, Feb 23 (Bernama) -- PETRONAS Chemicals Group Berhad (PCG) recorded full year profit after tax of RM1.6 billion in its Financial Year Ended 31 December 2020 (FY2020) driven by strong operational performance and recovery of petrochemical prices in the fourth quarter of 2020. Despite the unprecedented and extremely challenging environment, PCG recorded its highest plant production volume and maintained positive earnings margins throughout the year. These were achieved while navigating market uncertainties as well as trade flow impacts caused by the OPEC+ fallout and COVID-19 pandemic.
 
Key highlights FY2020 vs FY2019
 
• Strong operational performance as the Group registered 3% year-on-year improvement in production volume on higher plant utilisation rate of 94% against 92% in FY2019.
• Revenue remained healthy at RM14.4 billion, despite 12% year-on-year decline on account of lower average product prices, as the Group effectively retained sales volume during market downturn caused by the pandemic and supported by subsequent market recovery in the second half of 2020.
• EBITDA and PAT stood at RM3.5 billion and RM1.6 billion respectively.
• Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) margin was lower at 25% on the back of margin compression caused by lower prices.
• 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 2021. This is in addition to the first interim dividend of 5 sen per share which was paid to investors in September 2020. For FY2020, the total dividend amounted to 12 sen or RM960 million, translating into a dividend payout ratio of 59% of Profit After Tax and Non-Controlling Interests (PATANCI).
 
Managing Director/Chief Executive Officer, Datuk Sazali Hamzah commented, "2020 was an exceptionally challenging year. The impact of OPEC+ fallout and COVID-19 pandemic has resulted in supply chain disruption and dampened demand which caused a deep economic recession. Despite the abnormally tough environment, we delivered a positive set of results. We finished the year strongly thanks to our unwavering focus on operational and commercial excellence, supported by the 4Q2020 recovery momentum”. In the last quarter, petrochemical product prices recovered further on improved crude oil prices coupled with demand growth fueled by optimistic economic outlook.
 
Commenting on the market, Datuk Sazali said “We are seeing recovery momentum so far in early 2021 and we can expect improvement this year if demand continues to recover and crude oil prices remain at above USD50 per barrel, as these bode well for prices of our key products. To maximise profitability, we will continue enhancing our productivity and efficiency as well as applying strict financial discipline, particularly since we have planned several major plant maintenances this year”. 
 
Other priorities for the Group are the start-up and commercial operations of the petrochemical facilities within the Pengerang Integrated Complex as well as kick-starting construction of other facilities within the Kerteh and Gebeng complexes. “Achieving growth project targets will enable us to future-proof the business against market volatility and changing dynamics of the oil & gas industry. We expect to spend around RM6 billion in derivatives and specialty chemicals, over the next five to seven years. Investing in new facilities to produce wider range of products will further strengthen our resilience” he explained.
 
In line with the Group’s Environment, Social and Corporate Governance (ESG) efforts, PCG’s investment plans include developing innovative products from renewable resources. “This is aligned to the Group’s business priorities and sustainability agenda as well as the United Nation’s Sustainable Development Goals,” Datuk Sazali concluded.


Captions:
 
Picture_1: PETRONAS Logo
https://www.dropbox.com/s/k0ubs9hzhrw4j79/Picture_1.jpg?dl=0
 
Picture_2: Managing Director/Chief Executive Officer, Datuk Sazali Hamzah
https://www.dropbox.com/s/6m048q4a6y66q22/Picture_2.jfif?dl=0

 

SOURCE : PETRONAS CHEMICALS GROUP BERHAD (PCG)

FOR MORE INFORMATION, PLEASE CONTACT:
Name : Yogeswari Thangavelu
Media Relations, Corporate Affairs & Administration Department
PETRONAS CHEMICALS GROUP BERHAD (PCG)
Tel : (6) 017 2000919
Email : yogeswari.thangavel@petronas.com
 
--BERNAMA

 
 
 

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