Press Conference - Petronas
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Press Conference Open
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 appearing in this presentation and the associated slides (hereinafter referred to as "the
MATERIALS"). Accordingly PCG, its subsidiaries and related corporations and its or their directors, officers, employees, agents and advisers (hereinafter referred to as "We")
represent that, to the best of our knowledge and belief that the MATERIALS which are owned and directly related to us therein are accurate, correct and true.
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prior notice.
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Forward Looking Statements and Associated Risks
The MATERIALS and related discussions, including but not limited to those regarding the petrochemicals environment, anticipated demand for petrochemicals, plant
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Page | 1
Presentation Outline
2020 Performance
Growth Plan
2021 Outlook
© 2021 Petroliam Nasional Berhad (PETRONAS) |
2
Open
2020 At a Glance Open
Unprecedented 2020
US-China Trade War OPEC+ Fallout COVID-19 Pandemic
July 2018 early 2020 early 2020
4
Open
Cyclical Petrochemicals Market
Ethylene Price 1,352
1,398
(USD/MT) 1,242 1,228
1,180 1,185 1,155
1,105 1,093
Brent Crude Oil 1,040
1,092
1,040
(USD/bbl) 112 975
109 915 905
111 827
100 713
98 615
520
448 445
81
72
73
63
67 437 430
64 423
54 55 Methanol Price 411
375 375 378
(USD/MT) 348 337
53 328
45 292 289
42 270261
246
41
245
213
251
29 29
158 151 156
24 25
5
Open
Source: IHS, Platts, Team Analysis
2020 Performance Open
Sustain World Class HSE Excellence
Safety Performance
(Lost Time Injury Frequency)
0.3
0.27
0.26 Industry Benchmark
0.19
0.17
0.14
0.13
0.09
0.08
0.08
0.06
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
7
Open
3Ps Sustainability Strategy
People
People Planet Profit
Social Environment Stewardship & Business Sustenance &
Responsibility Resource Efficiency Green Initiatives
Be Green GHG Emission Reduction Operational Excellence
EcoCare
Energy Optimisation
Commercial Excellence
Safe Handling of
Chemicals for School Waste Minimisation
Growth Delivery Excellence
Plastic, Sustainability & You Water Conservation
Education
New Plastics Economy (NPE) Bio-Agenda
FTSE4Good and Dow Jones Sustainability Index (DJSI) benchmarking
Sustainability investment to date > RM 20 million 8
Open
Record Breaking Production Volume
Plant Utilisation
96%
94%
92% 92% 92%
85% 90% World Class
83% 80%
78%
76%
Production Volume
(million tpa)
10.2 10.4 10.4 10.7
9.2
8.5
7.8 8.1
7.5 7.7
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
9
OpenRetain High Customer Satisfaction
Order Fulfillment Reliability
97% 97%
95% 95%
94%
90% Industry Benchmark
2016 2017 2018 2019 2020
Customer Satisfaction Performance
(score by customers)
3.3 3.0 3.2 3.5 3.2 3.5
3.0 2.9 2.8 3.1 3.0 3.1
Overall Business Sales Technical Support Product Delivery Brand
& Support & Innovation Quality Services Experience
1.0 2.5 3.0 4.0
PCG Peers Poor Fair Good Excellent 10
OpenLaunched 11 New Innovative Products
Packaging Oil & Gas Construction
Paints &
Home Care Automotive
Coating
3• PETRONAS
1 PETRONAS GlydeTM CM302R 10 BRB Siloen®
EtIlinas Alfatene
MXP5
PE3838MA BRBFluid
Fluid1560
1560
4• PETRONAS 5 BRB
GlydeTM CH201 BRB Siloen® Water repellent
Designed for 6
PDA 222 additive for
high-stiffness Shale inhibitor
2 HC501 BRBFLD
7 BRB FLD1555
1555 cementitious 11 Petrolad 44758
bubble wrap additive for material
drilling
Low temperature 8 BRB 3163 based Diesel-fuel
stability surfactant on OH70
additives for
for household 9 BRB 1464-50 soot cleaning &
detergents Silicone-based abatement
additives for
surface finishing
11
OpenResilient Financial Performance
O&D Price 946
1,023
(USD/MT) 834 829
694
338
F&M Price
(USD/MT) 288 274
249
247
EBITDA & PAT
(RM billion)
6.6 7.0
5.3 4.9
4.4 4.4
3.3 2.8 3.5
1.6
2016 2017 2018 2019 2020
EBITDA PAT
12
OpenMaintain about 50% Dividend Payout Ratio
Dividend Payout Ratio
(% PATANCI)
59%
54%
st
Interim Dividend 52% 51%
1 paid on 25th Sep 2020 RM0.05
50%
nd
Interim Dividend
2 paid on 25th Mar 2021 RM0.07 Dividend Payout
(RM billion)
Dividend
(per ordinary share) RM0.12
2.6
2.2
1.5 1.4
1.0
2016 2017 2018 2019 2020
13
OpenGrowth Plan Open
Future-proofing Business through Growth
Vision
Basic Petchem Derivatives Specialty Chemicals
Preferred Chemical Company
Global Providing Innovative Customer
Solutions
1 2
Sustain strength in
Regional 1 basic petrochemicals
Selectively diversify
Local
2 into derivatives,
specialty chemicals and
solutions
PCG
Maximising
Expanding
Cash Stepping-Out
Core Business
Generator
15
OpenStarting Up PIC will Increase PCG’s Capacity to 14.6 mil tpa and
Strengthen Our Position in Basic Petrochemicals
Products
MEG DEG TEG
Polypropylene HDPE LLDPE
Isononanol
Note: Volume by equity 16
OpenGrowth via Three Levers
Expanding Core Business Stepping-Out
Extend Value Build Specialty Create Optionality
Chain Platform for Growth
via downstream via M&A via CVC and R&D
investment 17
OpenAdding Value to Existing Value Chain through
Downstream Investments
2 specialty chemicals projects in execution
1 Kertih, Terengganu 2 Pengerang, Johor
Specialty Ethoxylates & Nitrile Butadiene Latex
Polyols
Progress to date : EPC awarded Progress to date : EPC awarded
Personal Care Cleaning Agent Medical Glove
Insulation Foam Car Seat
18
OpenGrowing Specialty Chemicals Business in Silicone
Gebeng, Pahang The Netherlands
Silicone Blending Facility New facility for LAC
Plant business
Commercial Operation: 2021 Commercial Operation: 2022
Target market Asia Pacific and MEA Target market Asia Pacific, MEA, Europe
Certified by Halal, Kosher, ISO 2200, MesTI, Double the existing production capacity
HACCP
F&B `Automotive
Personal Care Lubricant
19
OpenFormed JV Partnership for Greater Market Access in
Indonesia
Borneo
Sumatera
Sulawesi
One of the largest distributors
of basic chemicals,
petroleum, logistics, and
supply chain solutions Java
• Joint Venture Agreement
Signing Ceremony on 28th
August 2020
• Incorporation of PT Anugerah
Kimia Indonesia (AKI) on 2nd
November 2020
20
Open2021 Outlook Open
Signs of Recovery but Remain Cautious
Brent Crude Oil Ethylene Price
(USD/bbl) (USD/MT) 958
863
61 748
684
50 556
44
43
Methanol Price
(USD/MT) 379
288
30 268
233
178
Q1 2020 Q2 2020 Q3 2020 Q4 2020 YTD 2021 Q1 2020 Q2 2020 Q3 2020 Q4 2020 YTD 2021
22
Open
Source: IHS, Platts, Team AnalysisKey Priorities for 2021
Maximising Cash
Expanding Core Business Stepping-Out
Generator
Continue cost optimisation Commercial operation of M&A in specialty chemicals
efforts Pengerang Integrated Complex Start-up of bio-MEG pilot plant
Additional EBITDA of Investments in derivatives and at R&D center
~ RM 300 mil through specialty chemicals Continue other R&D projects
OE & CX
23
OpenThank you Open
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