- EBITDA Margin of 30%
- Interim Dividend of RM2.0 billion
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Revenue rose 17% to RM6.6 billion (2Q 2021: RM5.6 billion) due to higher product prices, driven mainly by higher crude oil and natural gas prices following the Russia-Ukraine crisis.
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Profit after Tax (PAT) was comparable at RM1.9 billion (2Q 2020: RM1.9 billion) as wider product spreads and unrealised foreign exchange gains offset the decline in production and sales volumes.
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Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) and EBITDA margin declined to RM2.0 billion and 30% respectively (2Q 2020: RM2.2 billion and 38%) as higher product prices and spreads cushioned the temporary decline in production and sales volumes.
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An interim dividend of 25 sen per share, was declared for the financial year ending 31 December 2022. The dividend amounting to RM2.0 billion, is the highest dividend payout to date and is payable in September 2022.
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Plant utilisation rate declined to 72% (2Q 2021: 97%) due to significantly higher statutory plant turnaround and maintenance activities undertaken during the quarter, resulting in lower production and volume.
Commenting on the market outlook for 2H 2022, he said “Although product prices continue to be driven by the high energy prices, we observe the rising feedstock and operational costs coupled with China lockdowns have weakened demand, particularly for downstream chemical products. The prices of olefins & derivatives are expected to stabilise with demand recovery following the easing of restrictions in China, ahead of year end re-stocking activities. Urea prices have seen some correction but are likely to remain high compared to historical price levels”.
Updating on the Group’s growth projects, Yusri said “The commissioning activities at the Pengerang Integrated Complex have progressed since May and the start-up of the petrochemical facilities have commenced in phases since July. On other growth projects, the construction of our nitrile butadiene latex plant in Pengerang and the specialty ethoxylates & polyols in Kerteh are also progressing well, ahead of schedule operation date in 2H 2023”.
On the proposed acquisition of Perstorp Holdings AB (Perstorp), Yusri stated that the Group expects to complete the transaction in early 4Q 2022. Perstorp is a strategic fit in PCG’s sustainable growth strategy towards realising its expansion and decarbonisation goals. “As a growth platform in our specialty chemicals portfolio, Perstorp will enhance PCG’s long-term performance and value. We believe the acquisition will future proof our business against market cyclicality and volatility as well as to progress in a transformational shift towards a net-zero carbon emission future,” he concluded.
