16 · Nov · 2018
PCG Reports 12% Profit Growth in 3Q 2018 EBITDA Margin at 36%, Plant Utilisation Remained Strong at 91%
Kuala Lumpur, 16 November - PETRONAS Chemicals Group Berhad (PCG) maintained its strong performance as profit grew for the nine-month period in 2018 amidst heavy statutory turnaround activities undertaken at several of its plants.
The Group recorded revenue growth of 15% year-on-year to RM14.5 billion contributed by higher sales volume of 6.3 million metric tonnes on the back of strong market demand as well as higher production volume partly contributed by PC Fertiliser Sabah Sdn Bhd, which is currently in its second year of operation. Revenue growth was further supported by improved product prices which have been on a general uptrend in tandem with higher crude oil prices.
Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) increased 8% year-on-year to RM5.3 billion from RM4.9 billion, primarily driven by higher revenue, partially negated by stronger Ringgit Malaysia against the US Dollar. Amidst heavy statutory turnaround activities undertaken by the Group at some of its olefins, urea and methanol plants, the Group reported an EBITDA margin of 36%. Profit After Tax (PAT) increased 12% year-on-year to RM3.8 billion from RM3.4 billion in the previous year in line with higher EBITDA supported by lower tax expenses.
On a quarterly basis, PCG performed better against 3QFY2017, on better market conditions but was comparatively lower against 2QFY2018 in view of the abovementioned turnaround activities.
Elaborating on the results, Managing Director/Chief Executive Officer, Datuk Sazali Hamzah said, "All our operational and commercial plans for the year are progressing well. We successfully completed statutory turnaround work at five plants so far this year with minimal disruptions. Average group plant utilisation for the first 9 months of 2018 of 91% is comparable to the rate in 2017"
On the market outlook for the year, Datuk Sazali said "Market remains stable with methanol and urea showing strong demand while the demand for certain olefins derivative products is expected to soften'
Touching on PCG's growth projects, Datuk Sazali said "Construction of the petrochemical projects in Pengerang Integrated Complex is on schedule at 91% completion as at end October 2018. We are right on track to start commercial operation in the second half of 2019"
