Petronas Chemicals Group Bhd. · MYX:PCHEM
Petronas Chemicals Group Bhd — Q2 2017 Earnings Presentation
30 slides from Petronas Chemicals Group Bhd's earnings presentation, Aug 10, 2017
Slide 1: Analyst Briefing for Quarter Ended 30 June 2017
Analyst Briefing for Quarter Ended 30 June 2017 10th August, 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: Management presenters
Datuk Sazali Hamzah Rashidah Alias Mahadzir Rani Managing Director/ Chief Financial Officer Head of Manufacturing Chief Executive Officer Shamsairi M Ibrahim Abdul Aziz Othman Zaida Alia Shaari Head of Olefins & Derivatives Head of Strategic Planning & Ventures Head of Investor Relations Page 3
Slide 4: Excellence, Dynamic Growth
EXCELLENCE. 9 © DYNAMIC GROWTH atone ~ Ci ©
Slide 5: Petrochemicals Market Spread
Petrochemicals Market Spread USD/bbl USD/mt 400 60 350 55 300 50 250 200 45 150 40 100 35 50 0 30 Page 4
Slide 6: Strong 1H2017, boosted by SAMUR
Strong 1H2017, boosted by SAMUR © PETRONAS = Plant utilisation sustained at 94% Stable feedstock supply More volumes with SAMUR addition = Sales volume increased 14% y-o-y Improved sentiment from downstream petrochemical sectors Firmer demand with tight supply = EBITDA jumped by 47% at RM3.5 billion
Slide 7: Financial Highlights
EXCELLENCE. 9 © DYNAMIC GROWTH atone Financial Highlights | -
Slide 8: 2Q 2017 Group Financial Results
2Q 2017 Group Financial Results PETRONAS Year to date Individual quarter ended 2Q FY 17 12% 0% 14% 1H2017 ~Production t - ° Volume 2Q FY 16 |NIBEED)--------------- 4 t Kmt 1H 2016 1Q FY 17 [I _--- _---------------- 1 2Q FY 17 sox, Meal 1H 2017 Revenue t RM Mil 2Q FY 16 6,349 1H 2016 1Q FY 17 2Q FY 1
Slide 9: Segmental Results: Olefins & Derivatives
Segmental Results: Olefins & Derivatives Others * Others comprise of operations related to investment holding company and port services which provide product distribution infrastructure to the Group. 3,218 Revenue EBITDA m2Q FY 17 @2Q FY 16 w1Q FY 17 Revenue EBITDA m1H 2017 w1H 2016 | x% | EBITDA ma
Slide 10: Segmental Results: Fertilisers & Methanol
Segmental Results: Fertilisers & Methanol Revenue Others * Others comprise of operations related to investment holding company and port services which provide product distribution infrastructure to the Group. | PETRONAS _ 1,445 ce 40% || 34% | | a1% 577 622 Revenue EBITDA M2QFY17 M2QFY16 M1QFY17 Rev
Slide 11: Balance Sheet as at June 2017
Balance Sheet as at 30 June 2017 PETRONAS Total Assets Total Equity &Liabilities 31,948 32,466 31,948 32,466 Others Cash & cash equivalents Trade & other receivables Trade & Other inventories Investment in joint Equity ventures and associates Property, plant and equipment (PPE) Other liabilities Tra
Slide 12: Cash flow as at June 2017
Cash flow as at 30 June 2017 PETRONAS Statement of Cash Flows (RM million) (1,198) 7,403 — (72) 7,580 Cash & cash Cash flow generated Cash flow used in Cash flow (used Net Net Cash & cash equivalents at the from operating investing activities in)/generated from increase/(decrease) in increase/(decre
Slide 13: Manufacturing Highlights
EXCELLENCE. 9 © DYNAMIC GROWTH atone Manufacturing Highlights | 0
Slide 14: Sustained high Plant Utilisation rate at 94%
Sustained high Plant Utilisation rate at 94% S GROUP PLANT UTILISATION (%) 96% 94% Industrial Standard, 85% 2014 2015 2016 YTD 2017 PRODUCTION VOLUME (million MT) 9.2 77 8.1 5.0 2014 2015 2016 YTD 2017 PETRONAS Sustainable High Plant Utilisation Utilisation sustained at 94% despite MTBE plant turnar
Slide 15: 1H 2017 Segmental Operational Performance
1H 2017 Segmental Operational Performance 6 PETRONAS Olefins and Derivatives (O&D) | Uiiisation (4 Operation 700% Despite TA at MTBE plant, O&D segment sustained strong 86% 93% operation 2014 2015 2016 YTD 2017 Usiisation (2) | 6% | Fertiliser & Methanol (F&M) 75% 93% 80% 2014 2015 2016 YTD 2017 Ope
Slide 16: Operational Highlights
Operational Highlights PETRONAS Urea Production Methanol Production (thousand MT) (thousand MT) 1500 2400 1200 1800 900 1200 600 600 || 300 i) 2014 2015 2016 YTD 2017 2014 2015 2016 YTD 2017 Smooth commercial operation of Higher reliability of methanol plant and Fertiliser Sabah adding significant u
Slide 17: Fertiliser Sabah commissioning to commercial operation
Final Acceptance Commercial Operation Performance test run Commissioning Mechanical completion Page 14
Slide 18: Commercial Outlook
EXCELLENCE. 9 © DYNAMIC GROWTH atone > , oS Commercial Outlook | O
Slide 19: Olefins & Derivatives / Fertilisers & Methanol
Olefins & Derivatives Fertilisers & Methanol Page 15
Slide 20: Commercial: Olefins & Derivatives Outlook
Commercial : Olefins & Derivatives Outlook PETRONAS Stable-to-firm outlook for O&D segment tracking firm downstream demand amidst supply shortages Ethylene => Polymers = ¢ Buyers purchase ona hand-to-mouth basis « Less supply in NEA & SEA « Stable downstream demand ¢ Reduced availability of ME cargo
Slide 21: Commercial: Fertilisers & Methanol Outlook
Commercial : Fertilisers & Methanol Outlook © PETRONAS Bearish outlook for F&M as demand reduces Urea y Ammonia y ¢ Decrease in seasonal demand « ¢Lackluster demand as ®* spring application ends «Buyers waiting on ¢ Continuous oversupply sidelines in anticipation of weakening price Methanol = ¢ Stab
Slide 22: Commercial Highlights
Commercial Highlights S PETRONAS 1H 2017 highlights... Overall Excellent performance through: ¢ Focused execution of all Commercial Excellence initiatives with emphasis on: - Embarking on sales force effectiveness initiative - Enhancing presence in Focus Market (ie. Operationalization of PCM Indones
Slide 23: Moving Forward
EXCELLENCE. 9 © DYNAMIC GROWTH atone ° c Moving Forward | @ cS
Slide 24: 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 25: Website and investor relations email
Website: www.petronaschemicals.com Email : petronaschemicals_ir@petronas.com
Slide 26: Unaudited Consolidated Statement of Cash Flows for 2016
Of PETRONAS PETRONAS CHEMICALS GROUP BERHAD Unaudited Consolidated Statement of Cash Flows Under Indirect Method for 2016
Slide 27: Unaudited Consolidated Cash Flows, Quarter Ended 31 March 2016
PETRONAS CHEMICALS GROUP BERHAD 49830-#) UNAUDITED CONSOLIDATED CASH FLOWS FOR QUARTER ENDED 31 MARCH 2016 In RM Mil Profit before tax 895 Adjustments for: Depreciation and amortisation 327 Interest income (72) Share of profit equity-accounted joint ventures and associates (5) Other non-cash items (
Slide 28: Unaudited Consolidated Cash Flows, Cumulative Quarter Ended 30 June 2016
PETRONAS CHEMICALS GROUP BERHAD 499830-*) UNAUDITED CONSOLIDATED CASH FLOWS FOR CUMULATIVE QUARTER ENDED 30 JUNE 2016 In RM Mil Profit before tax 1,679 Adjustments for: Depreciation and amortisation 658 Finance costs (32) Interest income (135) Share of profit equity-accounted joint ventures and asso
Slide 29: Unaudited Consolidated Cash Flows, Cumulative Quarter Ended 30 September 2016
PETRONAS CHEMICALS GROUP BERHAD 499830-*) UNAUDITED CONSOLIDATED CASH FLOWS FOR CUMULATIVE QUARTER ENDED 30 SEPTEMBER 2016 In RM Mil Profit before tax 2,937 Adjustments for: Depreciation and amortisation 993 Finance costs (56) Interest income (195) Share of profit equity-accounted joint ventures and
Slide 30: Unaudited Consolidated Cash Flows, Year Ended 31 December 2016
PETRONAS CHEMICALS GROUP BERHAD 499830-4) UNAUDITED CONSOLIDATED CASH FLOWS FOR YEAR ENDED 31 DECEMBER 2016 PETRONAS In RM Mil Profit before tax 4,110 Adjustments for: Depreciation and amortisation 1,337 Finance costs (47) Interest income (261) Share of profit equity-accounted joint ventures and ass
PETRONAS Chemicals Group Berhad — Q2 2017 Earnings Presentation on 6ix