PETRONAS Chemicals Group Berhad (PCHEM) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 rose 4% year-over-year to MYR 15.2 billion, driven by higher sales volume and favorable foreign exchange impact, despite a 3% decline in average sales price.

• EBITDA increased 6% year-over-year to MYR 2.3 billion, with margin at 14.9%, supported by cost control and higher specialty segment contribution.

• Profit after tax reached MYR 1.5 billion, mainly due to finance income from deferred trade payables and unrealized Forex gains.

• Plant utilization improved to 88% for H1 2024, with Q2 at 89% due to reduced maintenance activities.

• Financial resilience was maintained despite industry downturn and operational challenges.

Financial highlights

• Q2 2024 revenue rose 9% year-over-year to RM7.7 billion; H1 2024 revenue up 4% to RM15.2 billion.

• EBITDA for Q2 was RM1.1 billion, up 5% year-over-year; H1 EBITDA at RM2.3 billion.

• Profit after tax for Q2 increased 28% year-over-year to RM809 million; H1 PAT at RM1.5 billion, up 29% year-over-year.

• Cash and cash equivalents stood at RM9.4 billion as of 30 June 2024.

• Total assets increased to RM61.7 billion, mainly from higher receivables and PPE for growth projects.

Outlook and guidance

• Olefins & Derivatives prices expected to remain soft amid weak downstream demand and new capacity in Asia.

• Urea prices forecasted to be firm due to Latin American demand; ammonia stable, methanol pressured by ample supply.

• Specialties segment performance to track macroeconomic recovery, with cautious optimism for H2 2024.

• 2024 expected to remain challenging due to global economic headwinds, geopolitical tensions, and slow recovery in China and Europe.