PCG delivers best performance since listing
KUALA LUMPUR: Petronas Chemicals Group Bhd (Petrona Chemicals) delivered its best performance since its listing on Bursa Malaysia back in November 2010.
This came as the group held its annual general meeting (AGM) yesterday to present the company’s performance to its shareholders for the financial year ended December 31, 2016.
Describing the ove r a l l performance of the group, managing director/ ch i e f executive officer of PCG, Datuk Sazali Hamzah said, 2016 was a tough year for the oil and gas industry, but despite significant decline in Brent crude oil and petchem product prices, Petronas Chemicals delivered its best ever performance since listing.
Speaking at the post AGM media conference, Sazali said that in 2016, PCG achieved its highest plant utilisation rate ever recorded since listing.
The group’s plant utilisation rate of 96 per cent far surpasses world class standards and is the result of its continuous efforts in reaching sustainable outstanding plant performance.
Correspondingly, its production volume grew by 11 per cent to 9.2 million metric tonnes from 8.3 million metric tonnes, the highest level ever recorded since listing.
This achievement is attributed to PCG’s reliable plant operation
Against the bearish environment, PCG continues to drive commercial excellence through better understanding of our customers’ needs, sustaining and augmenting our market position, as well as enhancing our marketing and sales capability. Datuk Sazali Hamzah, managing director/chief executive officer of PCG
of its top-notch facilities.
Sazali further elaborated that the group’s commercial excellence efforts have also enabled PCG to gain additional value for its products with the highest sales volume ever recorded at 7.3 million metric tonnes, despite it being a buyers’ market in 2016.
“Ag a i n s t the bearish environment, PCG continues to drive commercial excellence through better understanding of our customers’ needs, sustaining and augmenting our market position, as well as enhancing our marketing and sales capability,” he said.
Given the strong operational and commercial achievements, PCG’s revenue for 2016 rose by RM324 million or two per cent to RM13.9 billion amidst challenging market conditions, due to a higher sales volume and complimentary foreign exchange.
PCG’s EBITDA for 2016 rose to RM5.3 billion from RM4.7 billion in 2015, while the Group’s EBITDA margin remained strong at 38 per cent.
This is due to PCG’s well diversified portfolio of products and competitive feedstock advantage that was further supported by the favourable effects of a strengthening US Dollar.
Speaking of what lies ahead for PCG, Sazali shared that the slight recovery of petrochemicals prices in the first quarter of 2017 is driven by the improvement of the overall energy industry.
With global oil & gas sector growth expected to improve slightly, PCG foresees that demand for petrochemicals will remain moderate.
Sazali said Petronas Chemicals will continue to work on sustaining ots world class operational excellence, while keeping health, safety and environment as our utmost priority.
“And as Southeast Asia remains our key market, we will continue to further expand our presence in this region,” he affirmed.
He also mentioned that PCG will focus on the delivery of all its growth projects to ensure minimum disruption affecting timeline and cost. Key activities such as developing PIC products route- to- market is currently ongoing.
“The completion of PIC, as well as the current plants that we have, will provide a lot more opportunities to grow in the area of chemicals, derivatives and specialty.
Moving forward, PCG is set to stay at the forefront of the industry with the ability, resilience and determination to overcome challenges.
“We continue to assess further opportunities beyond 2020 in downstream derivatives and specialty chemicals at Pengerang, Kertih, Gebeng and East Malaysia.
This is part of our long term business positioning and sustainability,” he added.