Petronas Chemical Group recorded a lower plant utilisation rate of 77% as compared to 97% in the corresponding quarter mainly due to higher statutory turnaround and plant maintenance activities during the quarter resulting in lower production & sales volumes.
PCG said revenue was lower by RM248 million or 4% at RM6.8 billion largely due to lower product prices and sales volumes, partially offset by revenue contribution from Perstorp. EBITDA was lower by RM960 million or 49% at RM1.0 billion mainly due to lower product spreads and higher energy & utilities costs. Profit after tax decreased by RM1.5 billion or 77% at RM439 million in line with lower EBITDA.
The Olefins and derivatives segment’s operational performance recorded a lower plant utilisation rate of 79% as compared to 97% in the corresponding quarter mainly due to higher plant maintenance activities during the quarter resulting in lower
production volume.
Revenue was higher by RM77 million or 2% at RM3.5 billion primarily due to higher revenue contribution from a joint
operation entity and weakening of Ringgit Malaysia against US Dollar. EBITDA was lower by RM293 million or 42% at RM404 million following lower product spreads as well as higher maintenance and energy & utilities costs. Profit after tax was also lower by RM632 million or 75% at RM211 million in line with lower EBITDA.
Fertilisers and Methanol
The segment recorded lower plant utilisation rate of 76% as compared to 94% in the corresponding quarter mainly due to higher statutory turnaround and plant maintenance activities resulting in lower production and sales volumes. The segment’s revenue decreased by RM1.4 billion or 43% at RM1.8 billion primarily attributed to lower product prices, partially offset by weakening of Ringgit Malaysia against US Dollar.
Commenting on the results, Managing Director/Chief Executive Officer, Ir. Mohd Yusri Mohamed Yusof said, “In 3Q 2023, the Group undertook scheduled plant turnaround at our Ammonia plant in Kerteh and planned shutdown at the fertiliser plant in Bintulu. In addition, we faced an unscheduled shutdown at the Methanol plant in Labuan as well as Methyl tert-butyl ether
(MTBE) and Propane dehydrogenation (PDH) plants in Gebeng. These activities have since been completed and the Group is now operating normally at above 85% utilisation. On the market side, we observed slight demand recovery in several chemicals, but overall margins are still compressed.”
EBITDA was lower by RM662 million or 52% at RM601 million mainly due to lower product spreads. Profit after tax
was lower by RM634 million or 64% at RM360 million in line with lower EBITDA.
