Pet Chemicals Profit Soars on The Back High Energy Prices

Petronas Chemical Group Bhd (PCG) achieved a Pre-tax profit of RM2.134 billion for the quarter ended December 31, 2021 from a   pre-tax profit of RM519 million previously. For the year ended December 31, 2021 It achieved a pre-tax profit of RM7.710 billion on the back of a turnover of RM23.025 billion from RM1.857 billion on the back of a turnover of RM14.362 billion.

In a statement, it said that 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 RM23.0 billion supported by a high plant utilisation of 93%, despite several statutory turnaround and maintenance activities undertaken during the year.

On prospects, it said that the Group’s operations are expected to be primarily influenced by global economic conditions, petrochemical products prices which have a high correlation to the crude oil price, particularly for the Olefins and Derivatives segment, utilisation rate of our production facilities, and foreign exchange rate movements.

It said that the utilisation of our production facilities is dependent on plant maintenance activities and sufficient availability of feedstock as well as utilities supply. “The Group will continue with its operational excellence programme and supplier relationship management to sustain plant utilisation level at above industry benchmark,” it said

It said that the COVID-19 pandemic continues to affect the global economy and the market will remain volatile. PCG will navigate market uncertainties by leveraging its operational and commercial excellence.

It said that the Group anticipates product prices for olefins and derivatives to be moderate amidst global economic recovery. Fertiliser and methanol prices are expected to remain stable on healthy demand.

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