Petronas Chemicals closes 2017 with record performance

PETRONAS Chemicals Group Berhad (PCG) concluded 2017 recording its best ever performance in Revenue, PAT and EBITDA since its listing.

With an increase of 26 percent in revenue reaching RM17.4 billion, the company’s solid performance for the year was driven primarily by higher production and sales volume.

While PCG’s Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) rose 25 per cent to an outstanding RM6.6 billion, its EBITDA margin remained strong at 38%.

The Company’s Profit After Tax (PAT) for the year also grew by 37% to RM4.4 billion as compared to RM3.2 billion reported in the previous year.

For the year ended 31 December 2017, the Board of Directors declared a second interim dividend of 15 sen per ordinary share amounting to RM1,200 million, which will be payable in March 2018.

This will be in addition to the first interim dividend of 12 sen per share amounting to RM960 million which was paid to investors in September 2017. The cumulative dividend of 27 sen per share is the highest payout for the company.

Elaborating on PCG’s fourth quarter earnings, its Managing Director/Chief Executive Officer, Datuk Sazali Hamzah said, “2017 has been a remarkable year for us. We have achieved record earnings amidst a challenging environment where the average crude oil price per barrel, remained in the mid 50s.

“We have also sustained commendable operations year on year, despite the heavy statutory turnaround activities undertaken at a number of our facilities in 2017. We continue to record plant utilisation at 91 per cent, above world class benchmark,” he said.

Touching on PCG’s growth projects, Sazali added “We achieved a major growth milestone in May 2017, when we commercialised 1.9 million metric tonnes annual production capacity of ammonia and urea from PETRONAS Chemicals Fertiliser Sabah Sdn Bhd or the SAMUR project.

“Cementing our foray into specialty chemicals, I am pleased to report that our projects with BASF through our joint venture company, BASF PETRONAS Chemicals Sdn Bhd is on track. The Highly Reactive Polyisobutene (HR-PIB) plant in Gebeng, Pahang, has come on-stream, while the start-up of the new integrated aroma ingredients complex has been initiated in phases and is currently conducted in a step-wise approach.

“Our investment in Pengerang Integrated Complex (PIC) is also progressing on schedule at about 70 per cent project completion and trained operations personnel are being mobilised to the site in stages. The route-to-market activities for our products from PIC, including product trials and acceptance at customers’ facilities, have also been initiated.

“For 2018, PCG will continue to focus on operational and commercial excellence, while ensuring PIC’s project delivery and business readiness. At the same time, we will be pursuing growth opportunities beyond the existing projects to further expand our core business and improve our product portfolio in the specialties line,” he added.