Petronas Chemical Group recorded lower plant utilisation rate of 72% as compared to 97% in the corresponding quarter mainly due to higher plant statutory turnaround and maintenance activities resulting in lower production and sales volumes.
Revenue was higher by RM975 million or 17% at RM6.6 billion largely due to higher product prices in tandem with the improved crude oil price amidst tight supply, partially offset by lower sales volumes. EBITDA decreased by RM186 million or 9% to RM2.0 billion mainly due to lower volumes. However, profit after tax slightly improved by RM16 million or 1% to RM1.9 billion following higher foreign exchange gain on the revaluation of a shareholder loan to a joint operating company.
Olefins and Derivatives
The segment’s operational performance recorded a lower plant utilisation rate of 89% as compared to 98% in the corresponding quarter mainly due to higher maintenance activities resulting in lower production and sales volumes. Revenue was higher by RM213 million or 7% at RM3.3 billion primarily due to higher product prices, partially offset by lower sales volumes.
EBITDA for the segment decreased by RM106 million or 10% at RM965 million following lower volumes. However, profit after tax was slightly lower by RM4 million at RM954 million in line with lower EBITDA partially offset by higher foreign exchange gain on revaluation of a shareholder loan to a joint operating company.
Fertilisers and Methanol
The segment recorded lower plant utilisation rate of 62% as compared to 96% in the corresponding quarter due to higher plant statutory turnaround and maintenance activities resulting in lower production and sales volumes. The segment’s revenue increased by RM589 million or 26% at RM2.8 billion primarily attributed to the higher product prices, partially offset by lower sales volumes. EBITDA for the segment decreased by RM93 million or 9% to RM1.0 billion mainly due to lower volumes. Profit after tax also decreased by RM120 million or 13% to RM792 million in line with lower EBITDA.
The results of the Group’s operations are expected to be primarily influenced by global economic conditions, petrochemical product 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.
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 the above industry benchmark. The COVID-19 pandemic continues to affect the global economy and the market will remain volatile. PCG said it will navigate market uncertainties by leveraging its operational and commercial excellence.
The Group anticipates product prices for olefins and derivatives to remain stable amidst balanced supply with demand recovery. Fertiliser and methanol product prices are expected to be moderate supported by high crude oil prices.
