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.

• 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 the previous year, supporting higher production and operational efficiency.

• The Group maintained a strong balance sheet with total assets of RM60.0 billion and cash and cash equivalents of RM9.9 billion.

• The Group remains focused on operational efficiency, prudent capital management, and strategic investments.

Financial highlights

• Group revenue increased 7% year-over-year to RM30.7 billion, with sales volume up 8% to 11.2 million tons.

• EBITDA declined 7% to RM3.5 billion, with margins slipping to 12% from 13% due to negative contributions from PPC, forex losses, and higher operating costs.

• Profit after tax fell to RM1.3 billion from RM1.8 billion, mainly due to lower EBITDA, higher depreciation, and finance costs.

• Cash flow from operations in 2024 was RM4.6 billion, supporting ongoing investments and dividends.

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

Outlook and guidance

• 2025 market conditions expected to remain challenging due to geoeconomic policies, overcapacity, and geopolitical events.

• O&D segment prices expected to be stable, with plant utilization at PPC forecasted at 60-70% for 2025.

• F&M segment prices anticipated to be firm, supported by improved demand and limited supply.

• Specialty segment faces a fragmented and slow demand recovery, with cautious optimism for select end markets.

• Management remains committed to capital discipline and operational excellence amid market uncertainties.