Petronas Chemicals posts best quarterly performance, net profit at RM2bil in 4Q21

PCG managing director/chief executive officer Mohd Yusri Mohamed Yusof

KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) posted its strongest quarterly performance in the fourth quarter ended Dec 31, 2021 (4Q21) since its incorporation and Bursa Malaysia listing in 2010.

The group recorded a net profit of RM2bil on the back of RM7bil in revenue, mainly contributed by improved product spreads from higher prices of urea, polymers and methanol.

PCG declared a second interim single tier dividend of 23 sen per ordinary share, amounting to RM1.84bil in respect of the financial year ended Dec 31, 2021 (FY21).

The dividend is payable on March 25, 2022 to depositors registered in the records of depositors at the close of business on March 14.

In a statement, PCG said petrochemical product prices soared to historical peaks in 2021 driven by higher energy prices, strong demand and tight supply amid global supply disruptions.

The group’s revenue grew 60% year-on-year to RM23bil supported by high plant utilisation of 93%, despite several statutory turnaround and maintenance activities undertaken during the year.

The improved product spreads from higher prices lifted FY2021 earnings before interest, tax, amortisation and depreciation (Ebitda) margin to 36% from 25% in FY20 and increased net profit to RM7.3bil from RM1.6bil during the year.

Managing director/chief executive officer, Ir. Mohd Yusri Mohamed Yusof said: “We are pleased with the exceptional results given the challenges we faced and continue to navigate. These challenges include global supply chain constraints, price shocks, effects of climate change and Covid-19 related restrictions, which are still relevant factors to consider in 2022.”

“Our stellar FY21 performance is attributed to operational and commercial excellence initiatives undertaken by our team. Despite the market uncertainties, we captured opportunities, delivered our production and sales targets, and most importantly, served our customers in a timely manner with innovative products and solutions.”

Commenting on the 2022 outlook, Mohd Yusri said, “We are off to a good start this year. On the immediate term market outlook, product prices are anticipated to remain firm, supported by the high crude oil and natural gas prices amidst ongoing geopolitical tensions and Opec+ lagging production increase.

“We anticipate market correction to gradually occur once demand is balanced with supply from new capacities in the Asia Pacific region, scheduled to come onstream in 2022,” he said.

Mohd Yusri said its melamine plant in Gurun, Kedah is targeted to come onstream in 2024, in line with its strategy to add value to its existing molecules.

“As we pursue our growth agenda, we reinforced our commitments to create positive impacts on economic, environmental and social aspects.

“We have completed our net zero carbon emissions roadmap which sets our carbon reduction goals and pathways, starting with a reduction of 20% by 2030 towards becoming net-zero by 2050,” he added.