PETRONAS Chemicals Group Berhad (PCG) today held its 24th annual general meeting (AGM) virtually to present the Company’s performance to its shareholders for the financial year ended 31 December 2021. The AGM was chaired by PCG Chairman, Datuk Ir. (Dr.) Abdul Rahim Hashim. Also in attendance were all the Board members, PCG Managing Director/Chief Executive Officer, Ir. Mohd Yusri Mohamed Yusof and Chief Financial Officer, Mohd Azli Ishak.
In addition, Mohd Yusri shared the Company’s performance, growth plans, sustainability strategy and outlook for 2022.
In 2021, global COVID-19 recovery efforts intensified. Global economy continued to be impacted by numerous challenges including supply chain constraints, price shocks, effects of climate change and COVID-19 related restrictions. Amidst these challenges, the Group continued to emphasise on plant operations and safety, sustaining best-in-class plant utilisation rate at 93%, recorded production volume of 10.4 million tonne per annum (tpa) and maintained an excellent safety record.
“Our Two-Pronged strategy of sustaining our strength in basic petrochemicals and diversifying into derivatives, specialty chemicals and solutions continued paving the way towards a strong performance. Our competitive advantage from our integrated facilities, logistical edge, diverse portfolio, regional footprint and strong customer relationships were key to this performance. As a result, PCG closed 2021 with the highest Profit after Tax of RM7.3 billion since its incorporation.
We also declared the highest dividends per share and payout ratio for FY2021 since our listing in 2010; a total dividend of 56 sen, which includes a special dividend of 10 sen per share in conjunction with PCG’s 10th anniversary. The total dividend amounting to RM4.5 billion represents a dividend payout ratio of 61% of Profit after Tax and Non-Controlling Interests (PATANCI), above our dividend policy of 50% PATANCI,” said Mohd Yusri.
In terms of growth, PCG through its wholly-owned subsidiary, BRB International, strengthened its presence in the region as a key silicone manufacturer with the start-up of its new silicone blending facility in Gebeng, Pahang. The facility has an annual capacity of 8,000 mt with a diverse product range that will enable PCG to grow its specialty portfolio and gradually expand its product offerings to its customers. Additionally, PCG recently achieved Final Investment Decisions (FID) to build a melamine plant in Gurun, Kedah, potentially making PCG the sole melamine producer in Southeast Asia.
“Our Pengerang Integrated Complex (PIC), which is now in the final stages of start-up readiness, provides another platform to strengthen our position in both basic and specialty chemicals. We expect to commence start-up in the second quarter of 2022. With PIC, we will increase our production capacity from 12.8 million up to 14.6 million tonne per annum,” added Mohd Yusri.
Commenting on PCG’s sustainability strategy, Mohd Yusri said, “We have been making good progress in embedding sustainability at the core of everything we do. We have transitioned to a broader scope aligned to Economic, Environmental and Social pillars underpinned by strong governance. In 2021, PCG achieved a milestone with the establishment of its own Net Zero Carbon Emissions (NZCE) 2050 Roadmap suited to the chemical industry to guide its longer-term strategic decision-making on climate impact, business resilience, as well as opportunities from climate change and circular economy. Under the roadmap, which is also aligned to PETRONAS’ net-zero aspirations, PCG also set new carbon-reduction targets: a 20% reduction by 2030, another 60% by 2040 and finally, net-zero by 2050.
On the Social front, PCG continues to invest in employees and community well-being through initiatives that have benefitted more than 300,000 individuals, including the distribution of COVID-19 Relief Package to aid those affected by the pandemic, flood-relief initiatives, public education on plastic and effective waste management, mangrove conservation and bio-diversity programme, among others.
“As we transition to an endemic phase this year, we remain cautious in view of the rising oil and commodity prices as well as geopolitical tensions that may impact global economy. We will continue our operational and commercial excellence, cost optimisation efforts and pursue growth opportunities in 2022. We are confident that our solid fundamentals will enable us to maximise opportunities while navigating uncertainties in a post-pandemic world, while continuing to create sustainable value for all our stakeholders,” concluded Mohd Yusri.
Digital versions of PCG’s 2021 Reports; Integrated Report, Sustainability Report and Financial Report are available on PCG’s website at https://www.petronas.com/pcg/media/reports and Bursa Malaysia’s website at www.bursamalaysia.com under Company’s announcements.
