PETRONAS Chemicals Group Berhad (PCHEM) Q4 2024 earnings summary

Executive summary

• Revenue increased 7% year-over-year to RM30.7 billion, driven by higher production and sales volumes across all segments despite challenging market conditions.

• Profit after tax declined to RM1.3 billion, impacted by lower EBITDA, higher depreciation, finance costs, forex losses, and share of loss in associates and JVs.

• Plant utilization improved to 91% from 85% in 2023, supporting higher output and operational efficiency.

• The Group maintained a strong balance sheet with total assets of RM60 billion and cash and cash equivalents of RM9.9 billion.

• Dividends totaling RM1.2 billion were paid for FY2024, with an additional RM240 million declared post year-end.

Financial highlights

• Group revenue: RM30.7 billion (+7% YoY); EBITDA: RM3.5 billion (-7% YoY); PAT: RM1.3 billion (-28% YoY).

• Gross profit was RM4.7 billion, with a gross margin of 15.3%, down from 16.7% in 2023.

• Cash flow from operations: RM4.6 billion; major outflows for CapEx and dividends.

• Total assets: RM60 billion, down due to FX effects and lower JV/associate investments.

• Cash and cash equivalents increased to RM9.9 billion, supported by lower cash outflows in investing and financing activities.

Outlook and guidance

• Market conditions in 2025 expected to remain challenging due to overcapacity, geopolitical events, and slow demand recovery.

• O&D segment: Ethylene, MEG, and polyethylene prices expected to be stable; plant utilization at Pengerang to average 60-70% for 2025.

• F&M segment: Urea and ammonia prices anticipated to be stable, supported by limited supply and seasonal demand.

• Specialty segment: Demand recovery to be fragmented; cautious optimism for select end markets, especially consumer goods.

• 2025 maintenance schedule heavier, with four major turnarounds planned in H2; aim to maintain 2024 utilization rates.