PETRONAS Chemicals Group Berhad (PCHEM) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was broadly comparable with FY2022 as higher sales volumes offset lower prices; EBITDA and PAT fell on weaker spreads and higher maintenance costs.

• Production volume rose 2% to 10.38 million MT, while plant utilisation declined to 85% from 89% amid unplanned shutdowns and turnaround activity.

• Q4 revenue fell 17% YoY to RM7.2b; EBITDA declined 62% to RM655m and PAT fell 71% to RM142m.

Financial highlights

• FY2023 revenue was RM28.667b versus RM28.953b; EBITDA was RM3.796b versus RM8.090b, and PAT was RM1.750b versus RM6.327b.

• FY operating profit was RM2.16b versus RM6.63b; profit attributable to shareholders was RM1.70b versus RM6.32b.

• Total assets increased 9% to RM60.2b, mainly reflecting capital investment in property, plant and equipment.

• Operating cash flow was RM5.12b versus RM8.05b; investing cash outflow was RM2.59b versus RM12.95b, reflecting prior-year subsidiary acquisition spending.

Segment performance

• O&D FY revenue rose 6% to RM13.7b, while EBITDA fell 57% to RM1.22b; lower spreads and higher maintenance, energy and utilities costs weighed on results. Q4 EBITDA turned negative amid lower volume and spreads, turnarounds and shutdowns.

• F&M FY revenue fell 34% to RM8.50b and EBITDA fell 49% to RM2.61b, mainly on lower prices and spreads. Q4 EBITDA rose RM169m QoQ to RM770m as higher volume and spreads outweighed higher energy costs; utilisation reached 91.2%.

• Specialties FY revenue rose to RM6.39b from RM3.13b following Perstorp’s acquisition; EBITDA fell 53% to RM179m and the segment recorded a RM198m after-tax loss. Q4 revenue rose 7.8% QoQ to RM1.582b, while EBITDA fell to RM5m.

• Q4 after-tax results were a RM95m loss for O&D, RM527m profit for F&M and a RM49m loss for Specialties.