KUCHING, Aug 23: Petronas Chemicals Group Berhad (PCG) registered strong quarterly revenue and profits for 2Q 2022 with profit after tax (PAT) of RM1.9 billion despite lower production and sales volume.
In a media release today, PCG reported that its revenue grew 17 per cent year-on-year, lifted mainly by increased product prices on the back of high crude oil and natural gas prices.
Between March and June 2022, Brent crude oil price was at a 10-year historical high as the Russia-Ukraine crisis escalated.
On a cumulative basis, the Group’s 1H 2022 revenue and PAT, increased by 29 per cent and 19 per cent, to RM13.2 billion and RM3.9 billion respectively, against the same period last year.
PCG also announced an interim dividend payout of RM2 billion representing 51 per cent of 1H 2022 PAT.
PCG managing director-cum-chief executive officer (CEO) Ir Mohd Yusri Mohamed Yusof said that since the Russia-Ukraine war started in March, product prices remained relatively robust in 2Q 2022 due to high prices of crude oil and natural gas.
“This helped cushion the impact of lower production and sales volume for PCG as we undertook scheduled plant turnaround activities in our fertiliser plant in Sipitang, Sabah and methanol plant in Labuan.
“These activities are regulatory and necessary to ensure the long-term safety, reliability and efficiency of our facilities. As we have completed all plant turnarounds activities in 1H 2022, we expect our plant utilisation rates to be above 90 per cent in 2H 2022,” he added in the statement.
Commenting on the market outlook for 2H 2022, Mohd Yusri observed although product prices continue to be driven by high energy prices, the rising feedstock and operational costs coupled with China lockdowns have weakened demand, particularly for downstream chemical products.
“The prices of olefins and derivatives are expected to stabilise with demand recovery following the easing of restrictions in China, ahead of year end re-stocking activities. Urea prices have seen some correction but are likely to remain high compared to historical price levels,” he said.
On the Group’s growth projects, Mohd Yusri pointed out that the commissioning activities at the Pengerang Integrated Complex have progressed since May and the start-up of the petrochemical facilities have commenced in phases since July.
On other growth projects, he said the construction of its nitrile butadiene latex plant in Pengerang and the specialty ethoxylates and polyols in Kerteh are also progressing well, ahead of schedule operation date in 2H 2023.
On the proposed acquisition of Perstorp Holdings AB (Perstorp), Mohd Yusri stated that the Group expects to complete the transaction in early 4Q 2022.
Perstorp is a strategic fit in PCG’s sustainable growth strategy towards realising its expansion and decarbonisation goals.
“As a growth platform in our specialty chemicals portfolio, Perstorp will enhance PCG’s long-term performance and value. We believe the acquisition will future proof our business against market cyclicality and volatility as well as to progress in a transformational shift towards a net-zero carbon emission future,” he concluded. — DayakDaily
