KUALA LUMPUR, June 16 (Bernama) -- PETRONAS Chemicals Group Berhad (PCG) held its 22^nd annual general meeting (AGM) virtually today to present the Company’s performance to its shareholders for the financial year ended 31 December 2019. The AGM was chaired by PCG Chairman, Datuk Md Arif Mahmood, who is also PETRONAS’ Executive Vice President & CEO Downstream, together with PCG Managing Director/Chief Executive Officer, Datuk Sazali Hamzah and Chief Financial Officer, Puan Rashidah Alias.
 
During the AGM, Datuk Sazali shared with the shareholders on the Company’s performance and operations in 2019, its growth plans as well as outlook for 2020.
 
In 2019, the Company sustained best-in-class plant utilisation rate at 92% despite undertaking one of its most intensive plant turnaround programmes. As a result, it sustained high production volume at 10.4 million tonnes per annum (tpa). PCG also attained world-class level of order fulfillment reliability at 97% up from 93% in 2018.  Consequently, PCG recorded high sales volume at 8.4 million tpa comparable to that of 2018.
 
“This achievement comes as a result of PCG’s continuous focus on effective plant reliability and turnaround strategies, coupled with collaborative efforts with our suppliers and vendors to ensure supply chain efficiency. On the commercial front, we strive to understand our customers’ needs and develop customised solutions to resolve their pain points as well as help grow their business. Moving forward, we aim to attain operational and commercial performance in 2020 that is comparable to 2019,” said Datuk Sazali.
 
PCG closed 2019 with a Profit after Tax of RM2.8 billion. In line with the Group’s dividend policy, for FY2019, PCG declared a total dividend of 18 sen or RM1,440 million, translating into a dividend payout ratio of 51.2% of Profit after Tax and Non-Controlling Interests (PATANCI).
 
On PCG’s growth strategy, Datuk Sazali explained, “We continue to pursue our two-pronged strategy to deliver sustainable long-term growth for our business; namely to sustain our strength in basic petrochemicals; and to diversify into derivatives as well as specialty chemicals and solutions to add value to customers and benefit from higher margins. We also aim to deliver incremental value through the expansion of our portfolio.”
 
Towards this end, PCG acquired Da Vinci Group (DVG), the world’s largest independent producer and formulator of silicones, lubricant oil additives and chemicals. With DVG in its fold, PCG has a ready-made business in high-growth end markets such as personal care, coatings, construction and healthcare. This will open PCG to new markets and customers, further expanding its geographical footprint.
 
“Our Pengerang Integrated Complex (PIC) petrochemical project is another platform to provide further growth opportunities in derivatives and specialty chemicals.  We are gearing for full start-up towards commercial operations. However, this will depend on how the market recovers from the pandemic,” added Datuk Sazali.
 
Further accelerating its growth agenda, PCG also achieved two Final Investment Decisions (FIDs) for the development of a butadiene derivative plant in PIC and a specialty chemicals plant in Kertih Integrated Petrochemical Complex (KIPC). This will enable the Group to move across the value chain and get closer to its end users, effectively bringing it closer towards becoming a total solutions provider.
 
Commenting on the outlook, Datuk Sazali said, “The year 2020 started off as an unprecedented one for most industries in the wake of the COVID-19 pandemic followed by the OPEC+ fallout. Global outlook remains highly uncertain. Nevertheless, the Group continue to demonstrate resilience as evident in our recent 1Q 2020 results by maintaining our operational efficiency, customer centricity and diverse product portfolio. Our solid operational and commercial capabilities allow us to be responsive to market changes. We have been able to circumvent the disruptions from lockdowns that are happening worldwide and sustain our business.” 
 
“The COVID-19 pandemic and OPEC+ fallout have heightened economic as well as market uncertainties. Product prices will generally remain under pressure in this difficult environment. We believe that these challenges are temporary and the market will gradually recover towards the end of the year and into 2021. Hence, it is imperative that we remain resilient as we face the full impact of the pandemic and subsequent economic downturn. We are confident that our strong fundamentals will take us through this challenging period,” concluded Datuk Sazali.
 
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CAPTION:
Picture_1: The 22nd PCG AGM was chaired by PCG Chairman, Datuk Md Arif Mahmood (middle), who is also PETRONAS’ Executive Vice President & CEO Downstream, together with PCG Managing Director/Chief Executive Officer, Datuk Sazali Hamzah (left) and Chief Financial Officer, Puan Rashidah Alias (right).
 
About PETRONAS Chemicals Group Berhad
 
PETRONAS Chemicals Group Berhad (PCG) is the leading integrated chemicals producer in Malaysia and one of the largest in South East Asia. It operates a number of world-class production sites, which are fully vertically integrated from feedstock to downstream end-products. With a total combined production capacity of 12.8 million metric tons per annum (mtpa), it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol and other basic chemicals and derivative products. Listed on Bursa Malaysia and with three decades of experience in the chemicals industry, PCG is established as part of the PETRONAS Group to maximise value from Malaysia’s natural gas resources.
 
PCG is one of the top 10 companies in the FTSE4Good Bursa Malaysia (F4GBM) Index, out of 200 largest companies ranked by market capitalisation. It is committed to ensuring that its business practices are in line with globally recognised standards for Environment, Social & Governance (ESG) practices.
 
Further details on PCG can be found at www.petronaschemicals.com.my

SOURCE: PETRONAS Chemicals Group Berhad (PCG)

FOR MORE INFORMATION PLEASE CONTACT:
Name: Yogeswari Thangavelu
Media Relations, Corporate Affairs & Administration Department
PETRONAS CHEMICALS GROUP BERHAD (PCG)
Tel: +(603) 2331 5000 (GL)/ +(603) 23926434 (DL)/ M : (6) 017 2000919

--BERNAMA