PETRONAS CHEMICALS GROUP BHD

KLSE (MYR): PCHEM (5183)

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Last Price

6.93

Today's Change

+0.01 (0.14%)

Day's Change

6.88 - 6.97

Trading Volume

1,736,800

Changes
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Discussions
10 people like this. Showing 50 of 4,058 comments

Mabel

PetChem declared a dividend of five sen per share amounting to RM400 million payable on March 26.

Total dividends for FY2023 came in at 41 sen per share, totalling RM1 billion.

Thank you PCHEM

2 months ago

Mabel

Leesa688 Dont understand how PetChem works. Revenue increases but profit margin plunges! I can understand it if revenue plunges and this is from the stable of Petronas well run companies! Now even their dividend plunges!
Petronas Gas and Petronas Dagangan have always done well!
15/03/2024 7:43 PM

In the case of Petronas Chemicals Group (PetChem), several reasons have been identified for this financial outcome:

• Compressed Margins: Despite higher revenues, PetChem’s earnings before interest, taxes, depreciation, and amortization (EBITDA) were lower mainly due to compressed margins. This could be due to increased competition, higher production costs, or lower selling prices for their products.

• Higher Operating Expenses: An increase in operating expenses, such as maintenance and energy & utilities costs, can reduce profit margins even if revenues are up.

• Plant Utilization Rate: PetChem reported a lower plant utilization rate due to higher plant statutory turnaround and maintenance activities, which resulted in lower production and sales volumes. This means that even though they may have sold their products at higher prices, they sold less overall, impacting profits.

2 months ago

Mabel

• Foreign Exchange Losses: PetChem experienced higher foreign exchange losses on the revaluation of loans to a joint operation company and of a subsidiary. Currency fluctuations can have a significant impact on the profits of companies that operate internationally.

• Acquisition Costs: The acquisition of leading Swedish Chemical Group Perstorp and the associated costs also contributed to the decrease in profits. Acquisitions can lead to short-term financial strain due to the initial costs involved.
https://theedgemalaysia.com/article/petronas-chemicals-subsidiary-buys-swedish-firm-rm7b

• Global Economic Conditions: The global economic recovery has been sluggish, which affects demand and prices for chemical products.

• Dividends: The decrease in dividends is likely a result of the lower profits. Companies often adjust their dividend payouts based on their profitability to maintain financial stability.

Hence to answer his question, while higher revenues indicate that PetChem was able to generate more sales, various factors like compressed margins, increased operating expenses, lower plant utilization, foreign exchange losses, and acquisition costs have negatively impacted their profit margins and dividends. It’s a complex interplay of operational performance and market conditions that affect the financial health of a healthy company like PetChem

2 months ago

Mohd ImranRafifi

You are so hardworking digging out the old news of Petchem, Mabel 👏

2 months ago

Leesa688

Thanks Mabel for the explanation. Just that PetChem should be able to withstand such pressures as higher operating costs and foreign exchange losses, which are also faced by Petronas Gas or other international companies. Maybe the market does not see that Perstop is a good acquisition.

2 months ago

Mohd ImranRafifi

Perstop? Is that the company provides waste handling solution?

2 months ago

Mabel

#Mohd ImranRafifi Perstop? Is that the company provides waste handling solution?
22/03/2024 10:59 AM

No. Perstorp is leading Swedish Chemical Group and a global leader in the specialty chemicals market, known for its innovative approach and sustainable solutions. The company focuses on using small molecular building blocks to create products that enhance everyday life in terms of safety, convenience, and environmental sustainability. Perstorp’s product range serves a variety of industries, including animal nutrition, advanced materials, resins, coatings, and synthetic lubricants.

Recently, Perstorp was acquired by PETRONAS Chemicals Group Berhad (PCG), Malaysia’s leading integrated chemicals provider. This acquisition is part of PCG’s strategy to expand its presence in the specialty chemicals industry and to grow Perstorp’s value, focusing on sustainability and innovation. The acquisition aims to strengthen Perstorp’s position in the Asia Pacific markets and leverage PCG’s industrial know-how and customer base.

Perstorp is also committed to driving sustainable transformation within the chemical industry. One of their key initiatives is Project Air, which aims to reduce carbon emissions through the production of sustainable methanol. The project has been recognized by the European Union Innovation Fund as one of the large-scale green tech projects to be granted significant funding.

To Our Success!

Meow

2 months ago

Mabel

Perstorp complements PETRONAS Chemicals Group Berhad (PCG)'s future direction and business in several key ways:

Strategic Diversification: The acquisition of Perstorp is a strategic move for PCG to diversify into the specialty chemicals industry, which aligns with its vision of becoming a preferred chemical company providing innovative customer solutions.

Revenue Growth: Perstorp is expected to contribute significantly to PCG’s revenue, with an immediate increase of about 28% based on 2021 results. This supports PCG’s medium-term goal of generating 30% of its revenue from non-traditional businesses by 2030.

Sustainability and Innovation: Perstorp’s focus on sustainable solutions, particularly its Project Air which aims to produce sustainable methanol, strengthens PCG’s decarbonization efforts and commitment to sustainability.

To Our Success!

Meow

2 months ago

KingKKK

Malaysia's Mega-Cap Showdown: Mega Utilities vs Banks vs Healthcare - Who Wins? YTL, YTLPOWER, IHH, TENAGA, MAYBANK, PBBANK, CIMB, PCHEM

https://klse.i3investor.com/web/blog/detail/bestStocks/2024-03-26-story-h-185506101-Malaysia_s_Mega_Cap_Showdown_Mega_Utilities_vs_Banks_vs_Healthcare_Who_

2 months ago

Mohd ImranRafifi

@Mabel. I see. I thought it was Perstorp Sdn. Bhd. (https://perstorp.my/) 😅

1 month ago

Nepo

Thanks @ Mabel for the info
look like Pchem future is promising, bought some this morning@ RM 6.80

1 month ago

Tanleechoo

How is china petrol chemical industry? Is Petronas competitive in future.?

1 month ago

Sslee

Petrochemical industries in Europe is facing challenge of lifetime due to escalation cost in EU and cheaper China Petrochemical coming into market.

Pchem is only profitable due to Petronas support of cheaper NG cost.

1 month ago

Tanleechoo

This means like glove industry/ car
Industry… any thing China touch .it
Will be hyper competitive!?

1 month ago

EatCoconutCanWin

Boikot tetap boikot

1 month ago

Mabel

Haha today Mabel collect more at RM 6.71 and RM 6.70..

Hopefully can make some Duit Raya..

1 month ago

Mohd ImranRafifi

Malaysian is ridiculous...now they are boikot their own products ...

1 month ago

Sslee

Petrochemicals had historically been an exception to Beijing’s general push to be self-sufficient in basic materials, but the new plants being built by Rongsheng, Hengli and even offshore players such as BASF SE are changing that picture. As a result, traditional trade deficits in most downstream oil derivatives are turning into substantial surpluses:

A crucial question for the direction of the global climate is how the rest of the world now responds. Executives running petrochemical facilities outside China are facing glutted markets erasing their profit margins. The EU in November imposed anti-dumping duties on Chinese products made from PET, the type of plastic derived from polyethylene that’s widely used in bottles.

In Europe, competition from the influx of low-cost Chinese products in recent months has been an issue for chemicals producers on a par with the disappearance of cheap Russian gas as feedstock. “We see imports from China coming in, in an order of magnitude like never before," BASF chairman Martin Brudermüller told an investor call last month.

Right now, plants outside China are still holding on and pumping out products at a loss, in the hope that global consumption of plastics will eventually catch up. There’s no guarantee when, or even whether, that happens. Should the global chemicals sector capitulate to the tidal wave of polymers flowing out of China and shut down, 2024’s demand surge might look like oil’s last gasp, before decline and fall set in.

More From Bloomberg Opinion:

1 month ago

James_Bond

How’s your serba dinamik battleships, Mabel? Now sound like you betting big in Pchem? Going against the boycotting Petronas business by the revengeful Malay?

1 month ago

Mabel

James_Bond How’s your serba dinamik battleships, Mabel? Now sound like you betting big in Pchem? Going against the boycotting Petronas business by the revengeful Malay?

07/04/2024 12:37 PM

Haha Mr Bond,

Mabel thought Mr Bond should know everything...

Been in and out of SD many times. BUY LOW SELL HIGH and oledi locked profits.

Haha there are currently 3 types of Investors in Serba:

1. Bonus Issues Investors
2. Pre July21 Suspension Investors
3. Post July21 Suspension Investors

The one that benefits the most is Category 1 who was awarded Bonus Issues, Dividends and took price action during Dec 2020 rally. 2nd is Category 3 who took massive price action during July 2021 rally, Nov and Dec 2022 Pull Back. The Biggest loser are in Category 2 who freeze like Old Monks when they are supposed to take massive Price Action when it matters...

Meow

Stock: [SERBADK]: SERBA DINAMIK HOLDINGS BERHAD

Dec 29, 2022 10:51 AM | Report Abuse

whizzkid
Mabel is the best! I knew it..
15/07/2022 12:40 PM

Haha of course Mabel is the best..

Now you know why Blondi and Huang always loves to follow Mabel across i3 and walk 3 steps behind Mabel..

Keep pumping..

Meow Meow Meow

Stock: [SAPNRG]: SAPURA ENERGY BERHAD

Feb 22, 2024 10:31 AM | Report Abuse

#TalkNumberOne Mabel why siao lang sniffing you from behind all the time? Hahaha😂😂😂😂😂
22/02/2024 8:51 AM

Hahaha...what do you expect from an Auntie who has been hibernating for 7 years?

Sure finish one after wake up...hihihi...

1 month ago

Mohd ImranRafifi

no worries, their management is confident that the industry will experience an upward cycle as the economy rebounds and demand aligns with supply, given the company's long-term commitment

1 month ago

James_Bond

Comrades, let’s short Pchem for such poor profit performance!

1 month ago

Mabel

Do you know that Petronas is the Best Brand O&G Company in the World?

Check it out...

1 month ago

Mabel

Do you know that Petronas is the Best Brand O&G Company in the World?

Check it out...

1 month ago

Mabel

Today Mabel at more at RM 6.69..

1 month ago

Mabel

If Iran attacks Israel, Middle East turmoil could lift oil past $100 a barrel
Published: April 12, 2024 at 1:22 p.m. ET
By Myra P. Saefong

Oil prices could rise by $15 a barrel if all of Iran’s output is interrupted: analyst

Oil traders know the all-too-familiar drill: Heightened tensions in the Middle East have led to a rally in prices — so far to the highest intraday levels in six months. If Iran, one of the world’s largest oil producers, gets directly involved, however, a return to prices of more than $100 a barrel may soon follow.
“Nobody wants to be short heading into the weekend,” said Manish Raj, managing director at Velandera Energy Partners. “If the conflicts escalate over the weekend, short sellers will lose their shirts when they wake up on Monday.”

1 month ago

Mabel

Geopolitics will hold the focus of markets to start the week after Iran's attack on Israel. An Israeli military spokesman said the country is prepared to do "whatever is necessary" in its defense. Tehran said it would attack with greater force if there was retaliation. Late Friday saw a flight to safety with money moving from equities to bonds and gold. Oil also gained on possibilities of production disruption in the Middle East.

1 month ago

Mabel

It's looking good for PCHEM...

Meow

1 month ago

Mohd ImranRafifi

Israel says it will respond to Iran attack 'when time is right' 😶
https://www.bbc.com/news/world-middle-east-68814391

1 month ago

Mohd ImranRafifi

Is pchem into plastics industry?

1 month ago

Mabel

What Matters is PCHEM is listed in Bursa Hall of Fames...

Pos Code Stock M-Cap L4Q P/E
1 1155 *MAYBANK* 118135461959.68 12.29
2 1295 PBBANK 81719012204.35 12.28
3 1023 *CIMB* 70593871096.70 9.86
4 5347 TENAGA 68984995902.32 26.50
5 5225 IHH 55219842743.01 16.28
6 5183 *PCHEM* 54960000000.00 31.41
7 6947 CDB 49037703389.84 31.30
8 8869 PMETAL 44081955112.30 29.05
9 5819 HLBANK 41750254149.84 10.67
10 6742 *YTLPOWR* 36125825721.96 10.69
11 6033 PETGAS 35656749108.30 18.76
12 3816 MISC 35219327582.67 17.98
13 4677 YTL 33427033750.20 9.03
14 5285 *SIMEPLT* 30636615682.43 15.07
15 4707 NESTLE 29828400000.00 45.20
16 6012 MAXIS 28038836053.80 28.26
17 1961 *IOICORP* 25455055929.75 28.70
18 2445 *KLK* 25276697918.00 32.71
19 6888 AXIATA 25250274175.50
20 1066 RHBBANK 23574914555.50 8.39
21 4863 TM 23447908790.80 12.44
22 4065 PPB 22619323130.10 15.92
23 5681 PETDAG 21697035360.00 22.44
24 5211 *SUNWAY* 19644237976.54 22.96
25 1082 HLFG 19324184427.60 4.42
26 4197 *SIME* 19151829191.37 5.00
27 3182 GENTING 17407263484.51 7.68
28 5014 AIRPORT 17019255206.40 31.33
29 7084 QL 15672751975.16 35.20
30 4715 GENM 15438916084.80 42.78
31 5296 MRDIY 14550607366.68 25.95
32 5398 *GAMUDA* 14540621082.75 16.17
33 1015 AMBANK 14052143738.56 7.62

To Our Success!

Meow

4 weeks ago

Mohd ImranRafifi

Follow EPF chipping in 😁

3 weeks ago

yeinemesis

Then drop 0.11

3 weeks ago

Sslee

PCG’s dividend is based on Dividend Policy where the payout ratio is around 50% of Group PATANCI (Profit After Tax and Non-Controlling Interests).
In deciding the dividend payment, the Board and Management takes into account the Company’s earnings, working capital and capital growth requirements as well as other factors to ensure prudent cash management.

Overcapacity, increasing competition forcing reducing margin, slow growth of market demand and etc is expected for the next few years

What do you expect Group PATANCI and dividend will be for the next few years?

3 weeks ago

Mohd ImranRafifi

Get ready to receive an impressive result at this month end 😊

2 weeks ago

kong73

Ok we wait

2 weeks ago

Mohd ImranRafifi

don't know if it will break rm7 before the qr is out ..

2 weeks ago

Junichiro

Looking at it, the coming results does not look impressive.

1 week ago

Sslee

Urea futures fell to around $290 per tonne, reaching an over 3-year low, as lower natural gas and ammonia prices continued to offer fertilizer producers cost-effective feedstock. Abundant global natural gas supply, spurred by a mild winter, enabled manufacturers to ramp up production, aiding farmers in replenishing their reserves. Additionally, subdued demand for ammonia lowered expenses for fertilizer producers. At the same time, India, one of the world's largest consumers, plans to stop importing urea by the end of 2025, citing concerns about soil fertility and human health. The country's imports already decreased by 21% in 2023.

https://tradingeconomics.com/commodity/urea

1 week ago

kong73

Oh no urea price dropping

1 week ago

Mohd ImranRafifi

EPF started disposing PCHEM and PETGAS ... Wonder why

1 week ago

kong73

Normal for them to create liquidity

1 week ago

Sslee

Indonesia is likely to start operations of 22 petrochemicals projects from 2021 to 2025, mainly driven by strong demand for plastics and fertilizers, according to GlobalData, a leading data and analytics company.

GlobalData’s latest report, ‘Petrochemicals New Build and Expansion Projects Market Size, Share & Trends Analysis report by type, region, key commodities, and key countries forecasts and analysis 2021–2025’ reveals that out of the 22 projects expected to commence operations in Indonesia, four will be methanol projects, followed by three polypropylene projects.

Bhargavi Gandham, Oil & Gas Analyst at GlobalData, comments: “Indonesia, one of the largest economies in Southeast Asia, is witnessing strong demand for petrochemicals, especially for plastics and fertilizers. Indonesian government plans to minimize dependence on petrochemicals imports by promoting the domestic petrochemical sector to meet the soaring demand.”

Among the upcoming methanol projects in Indonesia, the Air products Bengalon Methanol Plant project leads with a production capacity of 2 MMtpy. The project is expected to start operations in 2025.

GlobalData notes that among the upcoming polypropylene projects, the PT Trans Pacific Petrochemical Indotama Tuban Polypropylene Plant project and Lotte Chemical Corporation Cilegon Polypropylene Plant project lead with a production capacity of 600,000 tpy each. The PT Trans Pacific Petrochemical Indotama Tuban Polypropylene Plant is expected to start operations in 2024 while Lotte Chemical Corporation Cilegon Polypropylene Plant will commence operations in 2025.

1 week ago

rickygiam

Pchem is FBMKLCI component stock. KWSP keep buying, its supporting at 6.85, its going to break 7.04, next target 7.40. QR results should improve, dont miss the boat.. Recommended BUY

6 days ago

Mabel

Broken oledi..now trading RM 7.09..

So Power...

Meow

5 days ago

Mohd ImranRafifi

Ya, it broke RM7 despite EPF disposed it 😃

4 days ago

rickygiam

Epf dispose cause need to adjust portfolio for kswp account3, incase some members need immediate CASH...

3 days ago

Mohd ImranRafifi

EPF adjust its portfolio here and buy CTOS instead. ha

2 days ago

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