PETRONAS Chemicals Group Bhd. · MYX:PCHEM
PETRONAS Chemicals Group Bhd — Q1 2017 Earnings Presentation
19 slides from PETRONAS Chemicals Group Bhd's earnings presentation, May 15, 2017
Slide 1: Analyst Briefing for Quarter Ended 31 March 2017
Analyst Briefing for Quarter Ended 31 March 2017 15th May, 2017 6.00 pm
Slide 2: Disclaimer
Disclaimer Warranties and Exclusion of Liability PETRONAS Chemicals Group Berhad ("PCG’), its subsidiaries and related corporations confirm that care has been taken in ensuring the accuracy and correctness of information, statements, text, articles, data, images and other materials contained and app
Slide 3: Sustained excellence, solid results
Sustained excellence, solid results S PETRONAS = Plant utilisation (PU) at 99% No turnaround during the quarter Stable feedstock supply = Sales volume increased 16% y-o-y Improved demand, tight supply Firmer petrochemical product prices = EBITDA margin at 41% Better spreads, lower unit cost Favourab
Slide 4: 1Q 2017 Group Financial Results
1Q 2017 Group Financial Results 6 Revenue Q1FY 17 Q4 FY 16 QI FY 16 PETRONAS Higher revenue mainly due to: ° Higher volume ° Improved product prices PAT QLFY 17 Q4 FY 16 tT Ql FY 16 t Higher PAT contributed by: e Higher volume ° Lower overall unit cost EBITDA QLFY 17 Q4 FY 16 QI FY 16 Increased EBIT
Slide 5: Olefins & Derivatives performance
• Improved market on higher crude oil prices. • Higher earnings due to: Improved product prices Lower unit costs Page 5
Slide 6: Fertilisers & Methanol performance
• Better product prices with tight supply and improved demand • Ammonia still feels the impact of global oversupply. • EBITDA improved with better spreads. Page 6
Slide 7: Balance Sheet as at 31 March 2017
Balance Sheet as at 31 March 2017 Total Assets PETRONAS Total Equity &Liabilities As at 31.03.2017 As at 31.12.2016 Others Cash & cash equivalents Trade & other receivables Trade & Other inventories Investment in joint ventures and associates Property, plant and equipment (PPE) 31,978 31,948 Equity
Slide 8: Cash flow as at March 2017
Cash flow as at 31 March 2017 PETRONAS 7,403 1,359 Statement of Cash Flows (RM million) (627) (1,105) (373) < 45 7,015 Cash & cash equivalents at the beginning of the period Cash flow generated from operating activities Cash flow used in Cash flow (used Net investing activities cash & cash equivalen
Slide 9: Strong start to 2017, PU 99%
Strong start to 2017, PU 99% S PETRONAS GROUP PLANT UTILISATION (%) a% | | | =n | = n_| 85% 82% so 7i 2012 2013 2014 2015 2016 YTD 2017 Segmental Plant Utilisation (%) Qi 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 mages age
Slide 10: The Game plan
The Game plan S PETRONAS Sustaining world class performance Robust internal reliability strategy Flawless turnaround execution Feedstock supplier management Page 10
Slide 11: Citral, Citronellol, L-Menthol
• Citral • Citronellol L-Menthol Page 11
Slide 12: Olefins & Derivatives, Fertilisers & Methanol
Olefins & Derivatives Fertilisers & Methanol Page 12
Slide 13: Commercial: Olefins & Derivatives Outlook
Commercial : Olefins & Derivatives Outlook PETRONAS O&D market anticipated to be soft with supply recovery and slow-moving demand ya Ethylene = ) ¢ Ample supply in SEA and NEA ¢ Improved downstream demand J MEG y « Resumption of normal supply from ME and SEA « Stable seasonal demand from polyester i
Slide 14: Commercial: Fertilisers & Methanol Outlook
Commercial: Fertilisers & Methanol Outlook S Mixed outlook for F&M as market correction takes place PETRONAS Urea y > (— ¢ Lower anticipated seasonal demand on high inventory ¢ Buyers waiting on sidelines in anticipation of weakening price +) Ammonia t > ¢ Scheduled maintenance in ME and Oceania - ¢
Slide 15: Highlights and sustainability
Highlights and sustainability © PETRONAS Q1 2017 highlights... Overall Good performance through: ¢ Focused execution of all Commercial Excellence initiatives with emphasis on: = Enhancing presence in Focus Market - Implementation of Key Account Management - Capability Building Moving forward to Q2 2
Slide 16: PCG remains cautious on uncertainties
PCG remains cautious on uncertainties Oil price recovery Improving global economy Market uncertainty Increasing Protectionism Supply overhang 6 PETRONAS Page 16
Slide 17: PCG will continue to focus on key success areas
PCG will continue to focus on key success areas © PETRONAS Operational Q) Sustain world-class operational performance Excellence and strengthen HSE program Commercial and Q Deliver value through commercial Innovation excellence and tailor-made solutions EXCELLENCE Excellence Effective project delive
Slide 18: Management team
Datuk Sazali Hamzah Rashidah Alias M Yusri M Yusof Managing Director/ Chief Financial Officer Head of Manufacturing Chief Executive Officer Akbar Md Thayoob Abdul Aziz Othman Head of Commercial Head of Strategic Planning & Ventures Page 18
Slide 19: Thank you
EXCELLENCE. O S DYNAMIC GROWTH PETRONAS O For further enquiries please contact us at: PETRONAS Chemicals Group Berhad Level 14, Tower 1, PETRONAS Twin Towers Kuala Lumpur City Centre, CI 50088 Kuala Lumpur, MALAYSIA petronaschemicals_ir@petronas.com.my www.petronaschemicals.com.m , THANK YOU
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