PETRONAS CHEMICALS GROUP BERHAD
INTEGRATED REPORT 2024
The theme "Together. Harnessing Potential." encapsulates the spirit of collaboration at the heart of our success. The cover celebrates the seamless integration of science, people and purpose, highlighting the collective strength that drives meaningful change. It showcases how innovation and cooperation unlock pathways to sustainability and progress, bridging the gap between challenges and opportunities. By harnessing the unique potential of our partnerships and expertise, we pave the way for impactful solutions that benefit industries, communities and the environment, demonstrating that together, we achieve more.
PCG At A Glance
A progressive energy and solutions partner enriching lives for a sustainable future
To be the preferred chemical company providing innovative customer solutions
Loyal to corporation
Strive for excellence
United, trust and respect for each other
Honest and upright
Revenue
Billion
EBITDA
Billion
EBITDA Margin
Profit
After Tax
Billion
Production
Volume
million tonnes
Plant
Utilisation
Leadership Messages
PCG has demonstrated conviction and commitment to creating value for our stakeholders as well as adapting to an evolving global landscape. Despite numerous challenges, including economic headwinds and a persistent downcycle in the chemicals industry, we remained steadfast in pursuing our strategic initiatives. Guided by our strategic thrusts and the courage to face challenges, we strengthened our position for a brighter future.
Chairman
As we close another year, I am reminded of the resilience and conviction that define our journey as a company. At PCG, our purpose is guided by three core commitments: delivering dependable and innovative solutions to our customers, creating long-term value for our shareholders and advancing our communities toward a more sustainable future. These commitments are ones we continue to deliver on, despite the challenges of a dynamic and often unpredictable external environment.
Managing Director /
Chief Executive Officer
In 2024, our performance was influenced by changing market conditions, geopolitical uncertainties, and forex fluctuations. Despite these hurdles, we stayed resilient, strengthening core business and focused on growth and sustainability.
Chief Financial Officer
Our Performance
Sustainability Review
In order to aid better understanding of our material matters, we have mapped them based on their impacts to PCG and our stakeholders, identifed opportunities and PCG's response to each material matter.
Climate Change
Nature & Environment
Innovation & Product Stewardship
Business Strategy
&
Financial Resilience
Circular
Economy
Supply Chain Management
Cybersecurity & Digitalisation
Corporate Governance
Economic
Enabling PCG to maintain competitive advantages and retain customer loyalty through delivering innovative customer-centric solutions, innovation in production and technologically advanced products that add commercial value, sustainable, improve quality of life and fulfil regulatory requirements.
Addressing customer pain points and meeting their needs through offering innovative, safe and more sustainable products that facilitate customers to grow their businesses sustainably.
Economic
Maintaining the strength of our core business through operational excellence, enabling sustainable growth and reinforcing business strategies to achieve financial stability, create sustainable value and future-proof our business.
PCG’s Two-Pronged Strategy, backed by EESG pillars, ensures long-term benefits and enhances stakeholder confidence through strengthening operational excellence, expanding PCG’s specialty chemicals portfolio and improving sustainable investment opportunities to mitigate rising risks and costs.
Economic
Positioning PCG as a key player in advancing circular economy in Malaysia, enabling cost-effective use of natural resources while reducing waste generation and environmental impacts.
Enabling customers to benefit from enhanced product quality, satisfaction and access to sustainable options. Additionally, by facilitating regulatory compliance, PCG supports stakeholders in achieving their environmental goals. The circular economy generates job opportunities and aligns economic activities with environmental and social objectives.
Economic
Thriving business opportunities and enhancing relationships to build trust and confidence, enabling PCG to elevate supply reliability, boost capabilities and minimise risks.
Embedding EESG principles into procurement, allowing PCG to support stakeholders in managing environmental and social risks, fostering transparency and collaboration, thereby enabling the development of a resilient network that meets stakeholder demands for quality, reliability and sustainability.
Economic
Enhancing business growth and investor confidence while building stakeholder trust, enabling PCG to safeguard its reputation and mitigate cyber risks to avoid legal and financial consequences.
Strengthening stakeholder confidence through PCG’s focus on robust integrated digitalisation, resilient cybersecurity and investment in digital and data infrastructure to minimise cyber risks and safeguard PCG’s reputation.
Social
Keeping our people and contractors’ workers safe will mitigate regulatory, legal and reputational risks, besides boosting employee morale and productivity, and lowering operational costs due to accidents and injuries at the workplace.
Enhancing investor confidence and maintaining stakeholders’ trust by providing a safe and healthy work environment across all operational sites for employees, workers and the local communities surrounding our operations.
Social
Uplifting employee morale and productivity while delivering proper staffing levels, robust succession planning and personalised development capabilities.
Developing high-performance operations to deliver long-term value to investors and stakeholders while creating a positive workplace culture for employees.
Social
Strengthening PCG's reputation, employees' morale and productivity while managing regulatory, legal and reputational risks.
Upholding human rights to enhance working conditions and livelihoods of people and communities interacting with and dependent on PCG's operations and value chain.
Social
Engaging with the local community to strengthen our knowledge base and insights, thus enabling informed decision-making that benefits all stakeholders while reinforcing PCG’s reputation as a reasonable and caring organisation.
Enabling PCG to address diverse community needs as a corporate duty to contribute to society, nurturing trust and advancing community well-being.
Environmental
Reducing PCG’s carbon footprint and enhancing climate resilience will reduce climate-related risks that could affect our business and financial stability.
Shifting towards low-carbon solutions and managing our carbon footprint will deliver long-term benefits to stakeholders, uncover growth opportunities for low-emission products and services, and protect our environment.
Environmental
Minimising PCG’s impact on nature and the environment will mitigate financial loss, regulatory fines and disruptions to operations, besides protecting our reputation.
Ensuring that natural resources are sustained and striving to conserve the environment for the communities and future generations.
Governance
Embedding robust corporate governance in operations to build credibility and trust while managing risks to protect stakeholder interests and deliver long-term value creation.
Increased credibility among stakeholders, which will help foster trust with our stakeholders and drive sustained value creation and resilience over the long term.
Production Volume
2023: 10.4 million tonnes
Sales Volume
2023: 9.62 million tonnes
Plant Utilisation
2023: 85% 1
Order Fulfilment Reliability
2023: 95% 2
Number of New Products
2023: 20 products
Number of Co-created Solutions
2023: 22 solutions
2023: 134,401 1 MWH
2023: 100.38 1 million GJ
2023: 76% 1
2023: 5.46 m 3 /tonne
World-Class Safety Performance
2023: 0.09 3
Diverse Nationalities Representation in Senior Leadership
2023: 18%
Women in Senior Leadership
2023: 31%
Social Impact Initiatives
Reached more than2023: 170,000 people
How We Create Value
Key Stories
*Excluding BRB
1 Data includes volume from Pengerang Integrated Complex (PIC)
*Excluding BRB and Perstorp in compliance with the General Data Protection Regulation (GDPR) and local data protection laws in Sweden and the Netherlands
*Excluding BRB
PCG has made significant investments in CO₂ reduction initiatives and energy optimisation projects, such as and heat recovery systems. We have also introduced high renewable carbon index products to the market through our Specialty Chemicals business. While these projects are capital-intensive, they align with the company’s long-term goals of achieving sustainability and regulatory compliance. Such initiatives not only reduce environmental impact but also future-proof PCG’s operations in an increasingly sustainability-focused market.
PCG prioritises maintenance activities to ensure the reliability and performance of its aging plants, which contributed to improved utilisation rates, such as 91.2% in O&D and 90.3% in F&M. However, these activities required substantial capital investments. Additionally, the construction of new facilities like the Sayakha plant and the melamine production plant diverted financial resources from other potential initiatives. These projects, however, are critical to securing future revenue streams and strengthening PCG’s chemicals portfolio.
Investments in training, safety programmes and digital upskilling initiatives represented immediate cost implications. Programme such as defensive driving training and digital adoption support for tools like the customer portal demanded dedicated resources. Despite these costs, these efforts have significantly strengthened workforce adaptability and safety culture, ensuring long-term organisational resilience and operational efficiency.
The expansion of R&D facilities and the establishment of innovation hubs requires substantial financial commitments. These investments, however, are vital to fostering innovation, enabling the development of cutting-edge solutions and supporting customer-centric product advancements. Initiatives like the construction of the new Technology and Innovation Centre in Bangi, Malaysia and global labs for localised solutions reinforce PCG’s position as a key player in specialty chemicals and sustainable product innovation.
Enhanced customer engagement initiatives, including expanded co-creation projects with customers, involved considerable operational costs. These efforts, however, have strengthened customer loyalty, expanded PCG’s market share and enhanced its ability to address evolving customer needs. By building closer relationships, PCG has successfully positioned itself as a trusted partner in delivering innovative and sustainable solutions.
We continue to balance financial capital allocation between immediate operational needs and long-term growth. We also prioritise shareholder value through a stable dividend policy. Cost optimisation and efficient working capital management helped navigate rising costs and market volatility, with targeted procurement savings and strategic sourcing strengthening our ability to protect and create value. This disciplined approach ensured operational excellence and readiness to capture emerging opportunities for sustained growth and value creation.
