Media Release

Kuala Lumpur, 24 Feb - PETRONAS Chemicals Group Berhad (PCG) recorded its highest financial performance in Financial Year 2021 (FY2021) driven by the surge in petrochemical prices throughout the year.

Petrochemical product prices soared to historical peaks in 2021 driven by higher energy prices, strong demand and tight supply amid global supply disruptions. The Group’s Revenue grew 60% year-on-year to RM23.0 billion supported by high plant utilisation of 93%, despite several statutory turnaround and maintenance activities undertaken during the year. The improved product spreads from higher prices lifted FY2021 EBITDA margin to 36% from 25% in FY2020 and increased Profit After Tax (PAT) to RM7.3 billion from RM1.6 billion during the year.   

PCG’s 4Q 2021 result was also its strongest quarterly performance since its incorporation and Bursa Malaysia listing in 2010. The Group recorded PAT of RM2.0 billion on the back of RM7.0 billion in revenue, mainly contributed by improved product spreads from higher prices of urea, polymers and methanol. 

PCG announced a second interim dividend amounting to RM1.8 billion.

In December 2021, PCG through its wholly owned subsidiary, BRB International strengthened its position as one of the key silicone manufacturers in the region with the startup of its new silicone blending facility in Gebeng, Pahang. This is in line with PCG’s strategy to diversify its portfolio into specialty chemicals and differentiated products. 

Managing Director/Chief Executive Officer, Ir. Mohd Yusri Mohamed Yusof, commented, “We are pleased with the exceptional results given the challenges we faced and continue to navigate. These challenges include global supply chain constraints, price shocks, effects of climate change and COVID-19 related restrictions, which are still relevant factors to consider in 2022. Our stellar FY2021 performance is attributed to operational and commercial excellence initiatives undertaken by our team. Despite the market uncertainties, we captured opportunities, delivered our production and sales targets, and most importantly, served our customers in a timely manner with innovative products and solutions.”

Commenting on 2022 outlook, Ir. Mohd Yusri said, “We are off to a good start this year. On the immediate term market outlook, product prices are anticipated to remain firm, supported by the high crude oil and natural gas prices amidst ongoing geopolitical tensions and OPEC+ lagging production increase. We anticipate market correction to gradually occur once demand is balanced with supply from new capacities in the Asia Pacific region, scheduled to come onstream in 2022.”

“On the longer-term growth front, we recently announced the building of a melamine plant in Gurun, Kedah. This plant is targeted to come onstream in 2024, in line with our strategy to add value to our existing molecules. 

As we pursue our growth agenda, we reinforced our commitments to create positive impacts on Economic, Environmental and Social (EES) aspects. We have completed our Net Zero Carbon Emissions (NZCE) roadmap which sets our carbon reduction goals and pathways, starting with a reduction of 20% by 2030 towards becoming net-zero by 2050,” he concluded.