- Plant Utilisation of 91%
- Revenue of RM30.7 billion
- EBITDA of RM3.5 billion
- Total Dividend of RM1.0 billion
Kuala Lumpur, 21 February – PETRONAS Chemicals Group Berhad (PCG or the Group), today announced its financial results for the fourth quarter (4Q 2024) and audited financial year ended 31 December 2024 (FY2024).
Demonstrating PCG’s operational resilience, the Group recorded 7% higher revenue of RM30.7 billion in FY2024, on the back of sales volume growth across its three business segments. However, profitability came under pressure due to challenging market conditions. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined year-on-year by 7% to RM3.5 billion due to lower spreads and higher operating cost. Profit After Tax (PAT) was 26% lower at RM1.3 billion in line with lower EBITDA and share of loss from associates and joint ventures.
Segment highlights
The chemicals sector downcycle has extended longer than initially anticipated, owing to stagnant global demand amid capacity oversupply. Market recovery varied across regions with geopolitical events, international trade tensions, energy cost fluctuations and climate impact contributing to the mix of economic uncertainty. Additionally, effects of significant rise in newly built capacities, especially in Northeast Asia, that is surpassing demand growth, kept pressures on prices and margins.
PCG navigated headwinds through its diverse product offerings and leveraged on its Fertiliser & Methanol (F&M) segment with relatively stable levels of demand and prices for urea and methanol within the Asia Pacific region throughout 2024. The Group also benefitted from plant efficiency improvements and reduction in downtimes, despite undertaking turnaround activities at four of its manufacturing plants. This resulted in average plant utilisation rate of 91%, against 85% in 2023, which boosted production and sales volume of commodities chemical products within the Olefins & Derivatives (O&D) and F&M segments.
The O&D segment also saw production volume growth contributed by Pengerang Petrochemical Company Sdn. Bhd. (PPC), which had commenced commercial operations on 30 November 2024. The volume and revenue growth for the segment was, nevertheless, negated by lower product spreads, higher plant operating cost and unfavourable foreign exchange impact.
The Specialties segment recorded a marked improvement almost doubling its EBITDA mainly driven by higher sales volume and lower feedstock cost.
Quarterly financial highlights
Compared against the preceding quarter (3Q 2024), revenue in 4Q 2024 declined by 7% to RM7.5 billion primarily due to lower average product prices and strengthening of the Malaysian Ringgit against the United States Dollar. The Group recorded Profit After Tax of RM539 million, reversing the Loss After Tax of RM762 million recorded in the previous quarter.
PCG announced a second interim dividend payout of 3 sen per share amounting to RM240 million. The total dividend declared in FY2024 amounts to RM1.0 billion, representing 89% of Profit After Tax and Non-Controlling Interests (PATANCI).
Key highlights 4Q 2024 vs 3Q 2024
- Average Group Plant utilisation rate was recorded at 95% (3Q 2024: 92%) contributing to an increase in production and sales volumes for commodity chemicals.
- Revenue declined 7% to RM7.5 billion (3Q 2024: RM8.0 billion) with lower average selling prices and lower sales volume in the specialties segment.
- Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) improved 28% to RM710 million (3Q 2024: RM554 million) mainly due to positive foreign exchange impact. EBITDA margin increased to 10% (3Q 2024: 7%).
- Profit after Tax (PAT) improved to RM539 million (3Q 2024: LAT RM762 million) in line with improved EBITDA and unrealised foreign exchange gain on revaluation of shareholder loan to PPC.
- A second interim dividend of 3 sen per share was declared for the financial year ended 31 December 2024. The dividend amounting to RM240 million, is payable on 20 March 2025. The total dividend declared in FY2024 amounts to RM1.0 billion, representing 89% of Profit After Tax and Non-Controlling Interests (PATANCI).
CEO’s quote and outlook
Commenting on the year, Mazuin Ismail, Managing Director/Chief Executive Officer of PCG said, “We met our operational targets, with plant utilisation for the O&D and F&M segments returning to above the 90% mark, despite the challenges faced earlier in the year. The Specialties segment also saw improved sales on supply constraints and improved demand for oxo and polyols.”
Market conditions are expected to remain unchanged in 2025 in view of uncertainties posed by changing geoeconomic policies and potential retaliatory actions by affected countries, in addition to ongoing geopolitical events. “We still must contend with oversupply in global petrochemical products, even as demand recovers given that capacity additions are expected to exceed demand growth by approximately 50% this year. From late 2024 and into 2025, we have observed a decline in prices and spreads in O&D, with signs that Southeast Asia integrated spreads is anticipated to remain in a trough,” Mazuin added.
“For PCG, resilience and agility are key to navigate the challenging environment. We remain focused on ensuring safe and efficient operations, keeping a close eye on the market and strengthening our financial discipline,” he concluded.
For more information, please contact:
Yogeswari Thangavelu
Media Relations, Strategic Communications & Administration Department
PETRONAS CHEMICALS GROUP BERHAD (PCG)
E : yogeswari.thangavel@petronas.com
