PCG recorded RM1.1b PAT in 2Q2019
Focus Malaysia 14 Aug 2019 12:22
PETRONAS Chemicals Group Berhad (PCG) released its second quarter 2019 financial results today, showing an improvement from the previous quarter amid challenging environment.
The Group recorded higher production volume during the quarter as the Group achieved higher plant utilisation rate of 100% in 2Q 2019 compared to 95% in 1Q 2019. Revenue grew by 5% to RM4.3 billion during the quarter, mainly due to higher sales volume in line with higher production. Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) rose 21% to RM1.5 billion with higher sales volume and favourable foreign exchange impact. EBITDA margin increased to 35% while Profit After Tax (PAT) improved 37% to RM1.1 billion from RM813 million in line with higher EBITDA.
On a cumulative basis, revenue declined 13% year-on-year in the first half of 2019 due to lower product prices coupled with lower sales volume. EBITDA declined 24% year-on-year to RM2.8 billion primarily due to lower revenue and expenditure incurred relating to statutory plant turnaround and maintenance activities. In line with lower EBITDA, PAT declined 27% year-on-year to RM1.9 billion.
The Group has declared a first interim dividend for the financial year ending 31 December 2019 of 11 sen per share equivalent to RM880 million.
Commenting on the quarter’s performance, PCG’s Managing Director/Chief Executive Officer, Datuk Sazali Hamzah said, “In 2Q 2019, we achieved higher plant utilisation rate as a result of disciplined execution of operational excellence practices.”
On the market front, Sazali said “Given the low demand situation coupled with new added capacities and uncertain global trade, the chemicals market is expected to stabilise at the current level.”
In respect of PCG’s growth projects, Sazali said “Our petrochemical plants at the Pengerang Integrated Complex (PIC) is at 98.95% overall completion as of July 2019 and remain on track for commercial operations in 4Q 2019. The additional capacity and range of new products from PIC will complement our ability to serve our customers’ diverse and growing requirements, thus enabling us to maintain our competitive position in the long run,” he added.