PETRONAS Chemicals Group Berhad’s (PCG) second quarter 2019 financial results shows an improvement from the previous quarter amid challenging environment.
The Group achieved higher plant utilisation rate of 100 percent in 2Q 2019 compared to 95 percent in 1Q 2019. Revenue grew by 5 percent to RM4.3 billion, mainly due to higher sales volume in line with higher production.
Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) rose 21 percent to RM1.5 billion with higher sales volume and favourable foreign exchange impact. EBITDA margin increased to 35 percent while Profit After Tax (PAT) improved 37 percent to RM1.1 billion from RM813 million in line with higher EBITDA.
On a cumulative basis, revenue declined 13 percent year-on-year in the first half of 2019 due to lower product prices coupled with lower sales volume. EBITDA declined 24 percent year-on-year to RM2.8 billion primarily due to lower revenue and expenditure incurred relating to statutory plant turnaround and maintenance activities. In line with lower EBITDA, PAT declined 27 percent year-on-year to RM1.9 billion.
On the market front, Sazali said “Given the low demand situation coupled with new added capacities and uncertain global trade, the chemicals market is expected to stabilise at the current level.”
In respect of PCG’s growth projects, Sazali said “Our petrochemical plants at the Pengerang Integrated Complex (PIC) is at 98.95 percent overall completion as of July 2019 and remain on track for commercial operations in 4Q 2019. The additional capacity and range of new products from PIC will complement our ability to serve our customers’ diverse and growing requirements, thus enabling us to maintain our competitive position in the long run,” he added.