·  EBITDA Margin of 28%
· Second Interim Dividend of RM1.3 billion

KUALA LUMPUR, Feb 23 (Bernama) -- PETRONAS Chemicals Group Berhad (PCG) registered record high revenue of RM29.0 billion in Financial Year Ended 31 December 2022 (FY2022). The 26% year-on-year revenue growth against RM23.0 billion in FY2021 is attributed to higher product prices coupled with stronger US Dollar against the Malaysian Ringgit (USD/MYR) as well as revenue contribution from the recently acquired specialty chemicals subsidiary, Perstorp Holding AB (Perstorp). Following the acquisition of Perstorp, PCG introduced a new operating segment on specialties in its 4Q2022 financial statements.
 
The Group delivered strong Profit After Tax (PAT) of RM6.3 billion in FY2022, albeit 14% year-on-year lower compared to RM7.3 billion in FY2021. Plant utilisation was recorded at 89% compared to previous year’s 93% due to several statutory turnaround and maintenance activities undertaken during the year.
 
Fourth quarter (4Q2022) revenue expanded 25% year-on-year to RM8.7 billion on the back of improved sales volume, stronger USD/MYR and higher revenue contribution from the specialties segment, despite the decline in average prices of products driven by softer demand, particularly for urea, methanol, polymers and glycols. Earnings Before Tax Depreciation and Amortisation (EBITDA) was lower by 25% to RM1.7 billion mainly due to compressed margin. PAT declined 76% to RM 484 million in line with lower EBITDA, unrealised foreign exchange loss and lower profit contribution from joint venture and associates.
 
PCG announced a second interim dividend payout of 16 sen per share amounting to RM1.3 billion. The total dividend declared in FY2022 amounts to RM3.3 billion, representing 52% of Profit After Tax and Non-Controlling Interests (PATANCI).

Key highlights 4Q2022 vs 4Q2021

· Revenue increased 25% to RM8.7 billion (4Q2021: RM7.0 billion) boosted by sales contribution from Perstorp and higher sales volume amid stronger USD against MYR.
· Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) declined 25% to RM1.7 billion (4Q2021: RM2.3 billion) due to lower products spreads and higher operating costs. As a result, EBITDA margin during the quarter declined to 20% (4Q2021: 33%).
· Profit after Tax (PAT) declined 76% to RM484 million (4Q2021: RM2.0 billion) due to lower EBITDA, unrealised foreign exchange loss and lower share of profit from joint venture and associates.
· A second interim dividend of 16 sen per share was declared for the financial year ended 31 December 2022. The dividend amounting to RM1.3 billion, is payable on 23 March 2023. The total dividend declared in FY2022 amounts to RM3.3 billion, representing 52% of Profit After Tax and Non-Controlling Interests (PATANCI).
· Plant utilisation rate was recorded at 100% (4Q2021: 89%) during the quarter contributing to increase in production and sales volumes.

Managing Director/Chief Executive Officer, Ir Mohd Yusri Mohamed Yusof commented, “The completion of Perstorp acquisition in October 2022 is a major milestone for PCG. With the creation of Specialties segment comprising Perstorp and BRB, we can now participate in the attractive and fast-growing end markets such as paints & coatings, personal care and animal nutrition with extensive product offerings and sustainable solutions, in parallel accelerating our growth and decarbonisation plans.”
 
He added that, “In the Malaysian operations, we achieved higher production and sales volumes as our 4Q2022 plant utilisation rate reached 100% from 97% in 3Q2022. However, margins were significantly compressed during the quarter as prices of all products declined due to lower global demand. Higher operational costs have also added to the pressure. Despite the market volatility, PCG achieved commendable full year net earnings that we are able to distribute to our shareholders.” 
 
Commenting on the market, “We view the reopening of China and relaxation of its Zero-COVID policy as positive for the chemicals sector, especially for polymers and olefins which have recovered slightly in recent weeks. Nevertheless, we remain cautious due to the dynamic changes in geopolitics and climate that can potentially affect global economy. Prices of petrochemical products will continue to fluctuate. For example, prices of urea have unexpectedly declined sharply despite the ongoing Russia-Ukraine war. We expect the first half of 2023 to be challenging as we continue to face slow demand and higher costs due to inflation, particularly for our business in Europe and USA.” 
 
On the Pengerang Integrated Complex (PIC), “We have gradually resumed start-up of petrochemical plants following complete rectification of the affected pipelines after the incident in October 2022,” he added.
 
Updating on the Group’s sustainability efforts, Ir Mohd Yusri said, “We have set a target to reduce an accumulative 100,000 tonnes of Carbon Dioxide equivalent (tCO₂e) Green House Gases (GHG) emissions within our Malaysian operations by 2024. Through operational optimisation initiatives, we have achieved a total reduction for Scope 1 and Scope 2 emissions of about 108,000 tCO₂e at the end of 2022, ahead of our planned timeline.
 
In the future, we plan to to capitalise on Perstorp’s Project Air, an innovative approach involving carbon capture technology to produce sustainable methanol. This will help bring us closer to realise our net zero aspiration by 2050,” he concluded.

Issued by
PETRONAS Chemicals Group Berhad

SOURCE: PETRONAS Chemicals Group Berhad

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Yogeswari Thangavelu
Tel: 017 200 0919 
Email:  yogeswari.thangavel@petronas.com 

--BERNAMA