PETRONAS Chemicals Group Bhd. · MYX:PCHEM
PETRONAS Chemicals Group Bhd — Q4 2016 Earnings Presentation
25 slides from PETRONAS Chemicals Group Bhd's earnings presentation, Feb 20, 2017
Slide 1: Quarterly Results Announcement: Highlights for the Quarter Ended December 2016
Cf PETRONAS PETRONAS CHEMICALS GROUP BERHAD QUARTERLY RESULTS ANNOUNCEMENT Highlights for the Quarter Ended December 2016 20th February 2017 © 2016 PETROLIAM NASIONAL BERHAD (PETRONAS) All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any
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: Key Highlights
(@) Key Highlights
Slide 4: Business Environment
Business Environment Ss PETRONAS Brent Crude Price @ Average Brent crude oil 60 Lifting up of Iran price for 2016 low at sanction USD42/bbl 50 40 ¢@ Global GDP growth at 2 2.4% Expectation of 20 production output cut beginning 2017 @ Petrochemical product prices fell by 17% Jan-16 Apr-16 Jul-16 Oct-
Slide 5: Key Highlights
Key Highlights © PETRONAS Best performance amidst toughest market headwinds ¢ Highest annual plant utilisation at 96% ¢ Better plant reliability, improved feedstock supply ¢ More sales volume, higher prices in Q4 ¢ Secured margin eased the impact of thin spreads ¢ Strongest EBITDA margin at 38% ° 14
Slide 6: Financial Highlights
Financial Highlights
Slide 7: Financial performance: PCG Group
Financial performance : PCG Group Year to date RM Mil 2% 13,860 YE 2016 Q4 FY 16 ° Revenue t Q3 FY 16 13,536 YE 2015 Q4 FY 15 Q4 FY 16 5% 31% YE 2016 4% , t Profit after Tax = FY 16 tf 1 YE 2015 a4 FY 15 cee! 9 9 14% | 38% YE 2016 EBITDA Q4 FY 16 38% 2% 46% t EBITDA Q3FY16 41% t margin YE 2015 (%) Q
Slide 8: Financial performance: Olefins & Derivatives
Financial performance: Olefins & Derivatives Others* ae O&D FGM Revenue (RM Million) « Increased revenue with better petrochemical product prices and higher volumes ¢ EBITDA increased with volume, supported by favourable exchange rate * Others comprise operations related to investment holding compan
Slide 9: Financial Performance: Fertilisers & Methanol
Financial Performance: Fertilisers & Methanol PETRONAS Pr 1 [32% | [37% | [37% | 1,147 1,056 1,054 425 F&M 338 4 Revenue (RM Million) Q4 FY 15 Q3 FY 16 Q4 FY 16 37% 36% 4,187 4,228 Others «¢ Urea and ammonia continue to be affected by oversupply ¢ Methanol price strengthening, tracking firmer crude
Slide 10: Balance Sheet as at December 2016
Balance Sheet as at 31 December 2016 SO PETRONAS Total Assets Total Equity &Liabilities 31,948 30,833 31,948 30,833 Others Cash & cash equivalents Fund Investments Trade & other receivables Trade & Other inventories Investment in joint ventures and associates Equity Property, plant and equipment (PP
Slide 11: Group Cash Flow - Period Ended December 2016
Group Cash Flow - Period Ended 31 December 2016 SO PETRONAS Statement of Cash Flows (RM million) 3,958 (2,824) (2,762) ° 8,707 324 7,403 (1,628) — Cash & cash equivalents Cash flow generated Cash flow used in Cash flow (used Net increase/(decrease) Net increase/(decrease) Cash & cash equivalents at
Slide 12: Operational Highlights
Operational Highlights
Slide 13: Operational Highlights: Plant Utilisation
Operational Highlights © PETRONAS Highest Annual PU since listing a 78.0% 80.0% 85.3% 95.7% a. Fertilizer & Methanol (FM) segment ; Industry Standard, 85% Bi10% reached 93% PU — |] Annual Plant Utilisation (%) b. Olefins & Derivatives (OD) 5013—Stst‘“<«éSt(té‘«sé‘i St«i segment reached 100% PU Highe
Slide 14: Operational Highlights: Ethylene and Methanol Production
Operational Highlights © PETRONAS Ethylene Production Wal 15% Ethylene was 15% higher compared to 2015 { Strongest operational performance with more than 9,000 kMT production 2013 20142015 2016 * Olefins and derivatives production reached more than 4,000 kKMT Methanol Production 45% Methanol was 45%
Slide 15: Operational Highlights: 2017 Operation Plan
Operational Highlights © PETRONAS 2017 operation plan 2017 TA Sustaining world class performance Aroma ¥ PC MTBE Plant v PC Derivatives commercial v PC Ammonia operation in 2017 ¥ PC Methanol SAMUR commercial operation in early 2017 2017 Key Activities Page 12
Slide 16: Commercial Highlights
Commercial Highlights
Slide 17: Commercial Highlights - Olefins & Derivatives
Commercial Highlights - Olefins & Derivatives © PETRONAS O&D market anticipated to be firm with limited supply availability, uptick in seasonal demand and stable energy price outlook Ethylene t Polymers t , « Shutdown of key producer « Scheduled TAs in ME and in SEA Asia . « Demand to rebound post «
Slide 18: Commercial Highlights - Fertilisers & Methanol
Commercial Highlights - Fertilisers & Methanol © PETRONAS F&M market outlook anticipated to be positive with strong demand and supply limitation Urea tT \ ( Ammonia t > ¢ Scheduled TAs in ME « Increased seasonal demand in SEA and China ¢ High demand in the US for spring season ¢ Price remain weak bu
Slide 19: Commercial Highlights
Commercial Highlights © PETRONAS Q4 2016 highlights... Recorded good overall performance through: ¢ Focused execution of Commercial Excellence initiatives: - Strategic volume shift - Optimisation in cost to serve - Product optimization - Implementation of Key Account Management Moving forward to 201
Slide 20: Closing Highlights
Closing Highlights
Slide 21: Closing Highlights
Closing Highlights © PETRONAS Remain resilient and keep on growing ¢ Further strengthen HSE culture ¢ Sustain world-class plant performance ¢ Enhance customer experiences to create greater value ¢ Grow strategic markets in Asia Pacific region Page 16
Slide 22: Q&A
Slide 23: 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 Edward Ong Head of Commercial Head of Strategic Planning & Ventures Head of Investor Relations
Slide 24: For further enquiries please contact us at
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.my www.petronaschemicals.com.my THANK YOU
Slide 25: End of Document
End of Document
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