Despite challenging market conditions and lower revenues in the second quarter ending June 30, 2014, EBITDA margin remained healthy above industry peers at 29%, at Malaysia based Petronas Chemicals Group Berhad (PCG).
In the quarter under review, revenue at PCG was lower by 12%, which fell by RM465 million to RM3.3 billion from preceding quarter of 2014.Despite challenging market conditions and lower revenues in the second quarter ending June 30, 2014, EBITDA margin remained healthy above industry #
Due to thinner product spreads in tandem with market conditions, group profit declined by 30% q-o-q or RM254 million to RM585 million and EBITDA reduced by 23% q-o-q or RM291 million to RM956 million.
The Board of Directors of PCG has declared an interim single tier dividend of 8 sen per ordinary share, amounting to RM640 million to shareholders, payable on 12 September 2014.
For the quarter ending June 30, 2014, PCG said that despite heavy statutory plant turnarounds and planned maintenance activities in the quarter, it was able to achieve higher sales volume as a result of higher sales from its inventory reserves and strategic sourcing.
“The improved plant reliability and gas supply availability at the Group’s methanol facilities also cushioned the impact of the planned activities”, PCG added.
It noted that in the quarter, market conditions were challenging, following increased supply availability for aromatics, fertilisers and methanol, while ethylene derivatives were affected by softer demand.
“Going forward, with improved plant maintenance programme and supplier relationship management, as well our commitment to marketing excellence and innovative solutions for our customers, we aim to achieve better plant and sales performance,” said Sazali Hamzah, CEO of PCG.
PCG is a leading integrated chemicals producer in Malaysia and one of the largest in South East Asia. It operates a number of world class production sites, which are fully vertically integrated from feedstock to downstream end-products, with a total combined annual production capacity of over 10 million MT.
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