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Petronas Chemicals’ net profit falls to MYR1.69 billion in 2023

KUALA LUMPUR (BERNAMA) – Petronas Chemicals Group Bhd’s (PCG) net profit shrank to MYR1.69 billion in the financial year ended December 31, 2023 (FY2023) from MYR6.32 billion amid a tough year for the global chemicals industry.

Revenue was slightly lower at MYR28.67 billion from MYR28.95 billion, it said in a statement yesterday.

“FY2023 was a tough year for PCG, both on the market and operational fronts.

“As we navigated a very volatile chemicals market throughout the year, internally, we faced interruptions at a few of our plants, which led to a weaker performance in our olefins and derivatives (O&D) and fertilisers and methanol (F&M) segments,” managing director/chief executive officer Mazuin Ismail said.

The specialties segment continued to be impacted by prolonged destocking and intensified competition from Chinese producers.

The group highlighted that moderating economic growth and slower-than-anticipated China recovery weighed on the industry leading to lower product demand and softening prices.

Concurrently, geopolitical tensions kept energy prices high, resulting in higher feedstock costs and margin compression.

The group registered a profit after tax (PAT) of MYR1.8 billion, down from MYR6.3 billion in FY2022.

Meanwhile, plant utilisation was recorded at 85 per cent compared to the previous year’s 89 per cent in the face of operational challenges as well as several statutory turnarounds and maintenance activities undertaken during the year.

For the fourth quarter of FY2023, net profit fell to MYR112 million from MYR481 million, on the back of lower revenue of MYR7.21 billion against MYR8.70 billion previously.

Mazuin said the chemicals industry is cyclical and expects the current downcycle will turn as the demand catches up with supply.

Petronas Chemicals Group Bhd managing director/chief executive officer Mazuin Ismail. PHOTO: BERNAMA