PETRONAS Chemicals Group Bhd. · MYX:PCHEM
PETRONAS Chemicals Group Bhd — Q1 2018 Earnings Presentation
24 slides from PETRONAS Chemicals Group Bhd's earnings presentation, May 21, 2018
Slide 1: Quarterly Analyst Briefing for the Quarter Ended 31 March 2018
PRODUCT STEWARDSHIP a HEALTH & SAFETY ‘SHAREHOLDER VALUE ENVIRONMENT SOCIETAL NEEDS BIODIVERSITY PETRONAS PETRONAS CHEMICALS GROUP BERHAD Quarterly Analyst Briefing for the Quarter Ended 31 March 2018 21st May 2018 4.00pm
Slide 2: Disclaimer
)» Disclaimer PETRONAS 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 conta
Slide 3: Presenters and management team
Datuk Sazali Hamzah Rashidah Alias Mahadzir Rani Managing Director/ Chief Financial Officer Head of Manufacturing Chief Executive Officer Shamsairi M Ibrahim Akbar M Thayoob Zaida Alia Shaari Head of Commercial Head of Strategic Planning & Ventures Head of Investor Relations Page 2
Slide 4: Key Highlights
PETRONAS Key Highlights
Slide 5: Market continues to improve
Market continues to improve © PETRONAS Key H Ig h lig hts UsD/mt Petrochemical Market Spreads UsD/bbl 400 5 75 350 + 70 300 ; O&D average spread* L 60 250 + 55 200 ; 50 150 L 45 100 L 40 50 + 35 F&M average spread** 0 - 30 A J A Tort n1 “O46 Op, 2. fa Ao, Ly Ay, ro) oy fy nn a as RS 2s Se = Continue
Slide 6: Continuing excellence, solid start
Key Highlights Continuing excellence, solid start PETRONAS = Plant utilisation (PU) at 100% No turnaround in 1QFY2018 Stable feedstock supply = Sales volume increased 15% y-o-y Healthy demand, higher merchantable volume Firmer petrochemical product prices = EBITDA margin at 37% Better spreads, highe
Slide 7: Financial Highlights
Of PETRONAS Financial Highlights
Slide 8: 1Q 2018 Group Financial Results
1Q 2018 Group Financial Results Financials PETRONAS Production Volume, kmt Higher production volume on: 1Q 2018 » Higher feedstock suppl 4Q 2017 * 9 pply > Zero planned turnaround 1Q 2017 11% t Revenue, RM million 1Q 2018 Improved revenue with: 4% > j F 4Q 2017 t » Higher product prices 1Q 2017 > Hi
Slide 9: Financials: Olefins & Derivatives
Financials : Olefins & Derivatives OS . . PETRONAS Financials Others (RM million) FEM 3,155 2.969 3,222 1,787 uss Revenue 1,106 963 3 (RM million) 10 2018 4Q 2017 1Q 2017 lll Revenue Ges EBITDA * Improved market with higher crude oil prices and healthy chemicals demand. * Higher earnings due to: > I
Slide 10: Financials: Fertilisers & Methanol
Financials : Fertilisers & Methanol OS . . PETRONAS Financials O&SD FEM (RM million) 1,831 1,813 1,507 774 Revenue 1,787 622 RM million) 1Q 2018 4Q 2017 1Q 2017 Mill Revenue Gee EBITDA /; Others * Improved product prices with overall improvement in energy prices * EBITDA improved with better spreads
Slide 11: Balance Sheet as at March 2018
Balance Sheet as at 31 March 2018 . . PETRONAS Financials Total Assets Total Equity & Liabilities (RM million) (RM million) 33,262 33,592 33,262 33,592 Vee meres Oc Cash & cash equivalents Trade & other receivables Trade & Other inventories Equit 1,597 Investment in joint ventures quity and associat
Slide 12: Cash Flows as at March 2018
Cash Flows as at 31 March 2018 . PETRONAS Financials (RM million) 4 2,042 Chb 10,237 1,627 (65) OK Cash & cash Cash flow Cash flow used in Cash flow (used Net Cash & cash equivalents at the generated from _ investing activities in)/generated from increase/(decrease) equivalents at the beginning of t
Slide 13: Manufacturing Highlights
PETRONAS > Manufacturing Highlights
Slide 14: Sustained Group Plant Performance
Sustained Group Plant Performance Sustained Group Plant Utilisation above 90% = Smooth and safe operation without major activities during the quarter = Reliable supply to our facilities = Annual production volume will remain above 10 kMT Of PETRONAS Quarter Group Performance 99% 99% 93% Annual Group
Slide 15: Sustained Group Plant Performance: Olefins and Derivatives
Sustained Group Plant Performance Utilisation (%) ° 100% 9 100% 86% 93% 94% 736 1.0 2013 2014 82015 2016 2017 YTD Volume (million MT) 2018 OLEFINS AND DERIVATIVES (O&D) Ethylene crackers delivered production as planned during the quarter despite challenges from upstream. Of PETRONAS Ethylene Product
Slide 16: Sustained Group Plant Performance: Fertiliser and Methanol
Sustained Group Plant Performance Utilisation (%) 93% 90% 100% yay 75% 80% 2013. 2014 «2015 42016 82017 YTD Volume (million MT) 2018 FERTILISER AND METHANOL (F&M) Urea and Methanol strengthen with reliable operation of PCM and PCFS PETRONAS = Urea Production aah) 1371 Annual Volume (thousand MT) 201
Slide 17: Operation & Maintenance Readiness
citral | menthol | citronellol OPERATION & MAINTENANCE READINESS highly reactive polyisobutene Page 13
Slide 18: Commercial Outlook
PETRONAS Commercial Outlook
Slide 19: Ethylene, Polymers, MEG, Aromatics outlook
Ethylene Polymers MEG Aromatics Q1 2018 Q1 2018 Q1 2018 Q1 2018 (vs Q4 2017) (vs Q4 2017) (vs Q4 2017) (vs Q4 2017) Q2 2018 Q2 2018 Q2 2018 Q2 2018 (Forecast) (Forecast) (Forecast) (Forecast) Page 14
Slide 20: Urea, Ammonia, Methanol outlook
Urea Ammonia Methanol Q1 2018 Q1 2018 Q1 2018 (vs Q4 2017) (vs Q4 2017) (vs Q4 2017) Q2 2018 Q2 2018 Q2 2018 (Forecast) (Forecast) (Forecast) Page 15
Slide 21: Moving Forward
Of PETRONAS Moving Forward
Slide 22: Chemicals demand to remain strong
Chemicals demand to remain strong © Increasing consumer demand Oil price Market recovery uncertainty Improving : Increasing global a: protectionism Moving Forward economy Page 16
Slide 23: Key focus areas for 2018
Key focus areas for 2018 OS PETRONAS Moving Forward = Sustain world class operational excellence = Deliver commercial & innovation excellence = Execute growth projects effectively " Growth portfolio and future proof business
Slide 24: Thank You
THANK YOU © PETRONAS For further enquiries please contact us at: PETRONAS Chemicals Group Berhad Level 14, Tower 1, PETRONAS Twin Towers Kuala Lumpur City Centre, 50088 Kuala Lumpur, MALAYSIA petronaschemicals_ir@petronas.com www.petronaschemicals.com
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