PCG maintains cautious outlook for 2025
PETALING JAYA: PETRONAS Chemicals Group Bhd (PCG) is maintaining a cautious outlook for the year ahead, underpinned by the global economic uncertainties.
Managing director and chief executive officer Mazuin Ismail noted that the group continues to operate in an increasingly uncertain global environment, intensified by trade tensions and ongoing market volatility.
“While we observed some improvement in commodities prices and a modest recovery in specialty chemicals demand during the first quarter of 2025, the overall outlook remains cautious. In response, we are doubling down on operational and commercial excellence; focusing on safety, cost optimisation, and asset reliability to strengthen our resilience,” he said in a statement.
Additionally, Mazuin said PCG will continue its stringent financial discipline and prudent capital spending.
“Our growth strategy focuses on building a robust project pipeline that responds to evolving industry dynamics, while leveraging our global innovation network to deliver cutting-edge solutions.
“Through these efforts, PCG remains strongly committed to long-term value creation for our stakeholders and to stay competitive in an increasingly challenging environment.”
Operationally, PCG said it achieved a plant utilisation rate of 91% in 2024, surpassing the world-class benchmark of 90%.
“The group achieved its highest total production volume of 11.2 million tonnes per annum with increased contribution from the specialty chemicals segment.
“These achievements were driven by proactive efforts to boost plant efficiency, minimise equipment downtime, strengthen asset reliability programmes and implement advanced digital solutions for predictive analytics in operational performance monitoring.”
On the commercial front, PCG said it achieved a record sales volume of 10.4 million tonnes in 2024, representing a 27% increase over the past five years.
“This growth highlights its strong market position and commitment to commercial excellence, further reflected in a 95% order fulfilment reliability in the commodities segment, exceeding the industry benchmark of 90%.
“Strategic sourcing and partnerships in key markets like China, Thailand, and Indonesia have strengthened its value proposition and enhanced its ability to serve customers reliably in their local markets.”
Mazuin said PCG's ability to achieve commendable operational and commercial performance despite a challenging environment was a testament to the group’s focus, discipline and commitment to excellence.
“The proactive efforts in enhancing efficiency, reliability and capabilities have significantly contributed to our resilience, ensuring we deliver superior product quality and timely services to our customers.”
PCG recorded its highest ever revenue at RM30.7bil in financial year 2024, driven by increased sales volumes across all segments, improved product prices, and contributions from petrochemical operations in Pengerang, Johor.
Despite a decline in earnings before interest, taxation, depreciation and amortisation to RM3.5bil, mainly driven by lower product spreads, PCG said it remained in a robust and healthy financial position.
“This resilience allowed for continued investments in growth projects and resulted in the highest dividend payout ratio of 88.5%,” it said.