PETRONAS Chemicals Group (PCG) continues to record strong earnings for the Financial Year Ending 31 December 2022 (FY2022). Third quarter (3Q 2022) revenue grew 22% year-on-year on the back of higher average product prices amid stronger US Dollar, coupled with improved production and sales volumes. Profit After Tax (PAT), however, declined 3% year-on-year to RM1.9 billion, due to softer margins and lower contribution from joint ventures and associates.

On a cumulative 9-month basis, the Group’s revenue and PAT, increased by 26% and 11%, to RM20.2 billion and RM5.8 billion respectively, against the same period last year.

Commenting on the result, Ir. Mohd Yusri Mohamed Yusof, Managing Director/Chief Executive Officer, said: “Product prices remained elevated during the quarter supported by high crude oil and energy prices, though lower than 2Q 2022. Production and sales volumes improved this quarter with our plant utilisation rate improved to 97% from 72% in 2Q 2022”. Approximately 70% of PCG’s production volume is exported within the Asia Pacific region, of which, Southeast Asia make up about 40%. Yusri noted that, “While the stronger US Dollar boosted our revenue, we faced margin pressure as a result of higher operating costs.”

Commenting on the market, “We are seeing softened demand, particularly for polymer products, as high cost of energy persists amid extended COVID-19 lockdowns across China. Having declined to 2021 levels in recent weeks, the prices of olefins and derivatives are expected to moderate further until the easing of restrictions in China. However, urea prices are expected to remain high between USD550/metric tonne to USD700/metric tonne as energy prices remain elevated due to the ongoing Russia-Ukraine war.” 

Updating on its growth initiatives, Yusri said “In October, we welcomed Swedish-based Perstorp Holdings AB (Perstorp) into the PCG family. We look forward to preserving and growing the value of Perstorp Group, focusing on delivering existing business plan targets while maximising the synergies with PCG”. A well-established specialty chemicals company with presence in Europe, USA and Asia Pacific, Perstorp is a strategic fit in PCG’s specialty chemicals expansion and decarbonisation plans.

On the Pengerang Integrated Complex (PIC), “The fire incident that occurred in late October is not within our petrochemical facilities and currently no damage has been found.  However, due to the integrated nature of PIC, the petrochemical facilities have been temporarily shut down and will resume its operations once all considerations and requirements are met,” he concluded.