QUARTERLY RESULTS ANNOUNCEMENT · 2014-11-24 · Division –Name/OPU/HCU/BU (acronym) ; Name of Presenter ©Petroliam Nasional Berhad (PETRONAS) 2014 1 QUARTERLY RESULTS ANNOUNCEMENT

Presentation Title (acronym) ;Division – Name/OPU/HCU/BU (acronym) ;Name of Presenter ©Petroliam Nasional Berhad (PETRONAS) 2014 1

QUARTERLY RESULTS ANNOUNCEMENTHighlights for theQuarter Ended September 2014

6 November 2014

PETRONAS Chemicals Group Berhad

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 andcorrectness of information, statements, text, articles, data, images and other materials contained and appearing in this presentation and the associatedslides (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 areowned and directly related to us therein are accurate, correct and true.

The MATERIALS is not exhaustive. We do not assume any obligation to add, delete or make any changes to the MATERIALS and we may do so, if we feelnecessary, without prior notice.

We expressly disclaim all liabilities whatsoever for any direct, indirect, special or consequential loss or damages howsoever resulting directly or indirectlyfrom the access to or the use of this MATERIALS and the reliance on the MATERIALS contained herein. You should rely on your own evaluation andassessment of the MATERIALS in order to arrive at any decision. Any decision made by you based on the MATERIALS is your sole responsibility.

The MATERIALS may also contain information provided by third parties and we make no representation or warranty regarding the accuracy, reliability,truth and completeness of the said third parties' information.

In no event would the MATERIALS constitute or be deemed to constitute an invitation to invest in PCG, its subsidiaries and related corporations or aninvitation by PCG, its subsidiaries and related corporations to enter into a contract with you.

Forward Looking Statements and Associated Risks

The MATERIALS and related discussions, including but not limited to those regarding the petrochemicals environment, anticipated demand forpetrochemicals, plant turnaround activity and costs, investments in safety and operational risk, increase in turnaround activity and impact onproduction, future capital expenditures in general, generation of future receivables, sales to customers, cash flows, costs, cost savings, debt, demand,disposals, dividends, earnings, efficiency, gearing, growth, strategy, trends, reserves and productivity together with statements that contain words suchas "believe", "plan", "expect" and "anticipate" and similar expressions thereof may constitute forward looking statements.

Such forward-looking statements are subject to certain risks and uncertainties, including but not limited to, the economic situation in Malaysia andcountries in which we transact business internationally, increases in regulatory burdens in Malaysia and such countries, changes in import control orimport duties, levies or taxes in international markets or in Malaysia, and changes in prices or demand for products produced by us, both in Malaysia andin international markets, as a result of competitive actions or economic factors. Such forward looking statements are also subject to the risks ofincreased costs in related technologies and such technologies producing expected results, and performance by third parties in accordance withcontractual terms and specifications.

Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated orprojected. Specifically, but without limitation, capital costs could increase, projects could be delayed, and anticipated improvements in capacity orperformance may not be fully realised. Although We believe that the expectations of management as reflected by such forward looking statements arereasonable based on information currently available, no assurances can be given that such expectations will prove to have been correct. Accordingly, youare cautioned not to place undue reliance on the forward looking statements. We undertake no obligation to update or revise any of them, whether as aresult of new information, future events or otherwise.

This presentation and its contents are strictly confidential and must not be copied, reproduced, distributed, summarised, disclosed, referred or passed toothers at any time without the prior written consent of PCG.

Disclaimer


Sazali HamzahPresident/Chief Executive Officer

Farina Farikhullah Khan Chief Financial Officer

Nor Shahda ZakariaHead of Investor Relations

Akbar Md ThayoobHead of Commercial

Abdul Aziz Othman Head of Strategic Planning and Ventures

M Yusri M Yusof Head of Manufacturing

1


Key Highlights

Feasibility study on growth project in Sabah

New feedstock supply sources

Initiated preparations for new ethane contract pricing

Improved financial performance after heavy turnaround and

maintenance activities

2


Quarterly Group Plant Utilisation

Plant Utilisation (%)

93%

83%

70%

66%

80%

76%

75%

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

3

Olefins & Derivatives Fertilisers & Methanol

88%80%

63% 65% 67%

85%

64%

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

Group

99%

87%

78%

67%

97%

65%

90%

Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014

# of TA: 1# of Days: 0.6 # of TA: 0(1)

# of Days: 0.8 # of TA: 4# of Days: 6.6 # of TA: 0(2)

# of Days:7.8

# of TA: 1# of Days:2.6 # of TA: 3

# of Days: 7.7

(1) TA started in Q1 ended in Q2 (2) TA started in Q3 ended in Q4

TA

TATA

PML 2 Gas Supply

Constraints

# of TA: 1# of Days:3.7

PML 2 Gas

Supply

Constraints +

PML 1 TA

* Based on Weighted Average TA Days according to PCG’s total capacity


Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14 Q2 FY14 Q3 FY14

4,455 3,872

3,527 3,349 3,806

3,341 3,549

1,780 1,552 1,032

712 1,247

956 1,099

21%29%

Revenue, EBITDA (RM million) & EBITDA Margin (%)

33% 29%

4

Group



3,164 2,778 2,665 2,625

2,859

2,246

2,734

1,193 1,005

758 442

879 595

872

17%28% 31% 32%


1,343 1,142

912 779 1,005 1,123

851 599 550

285 295 400 405 219

38%31% 36% 26%

31%

27% 40%

40%40%

36%38% 48%45%


Group Cash Flow

(RM million) Period Ended

30 Sept 2014

Period Ended

30 Sept 2013Change

Cash flows generated from operating activities 2,976 3,942 (966)

Cash flows used in investing activities (1,604) (789) (815)

Cash flows (used in)/generated from financing

activities(1,675) (1,932) 257

Net increase/ (decrease) in cash & cash equivalents (303) 1,221 (1,524)

Cash & cash equivalents at beginning of the period 10,155 9,307 848

Cash & cash equivalents at end of the period 9,851 10,571 (720)

5


Operational Highlights

6

Focused and effective turnaround

- Tighter control and execution improvement in 2014

Strengthening supplier management program

- new ethane and methane feedstock projects to support

optimum production rates


• Urea

• Ammonia

• Methanol

7

We expect product prices to be softer in Q4 before stabilising towards year end

• Ethylene

• Polymers

• MEG

• Aromatics


Market Highlights


APPENDIX



Financial Summary

8

* Earnings per share, based on weighted average number of shares issued.

(RM million) Quarter ended 30 Sept 2014

Quarter ended 30 Sept 2013

Quarter ended30 Jun 2014

Period ended30 Sept 2014

Period ended30 Sept 2013

Revenue 3,549 3,527 3,341 10,696 11,853

Operating profit 850 847 748 2,644 3,810

Share of profit of equity accounted investees

53 78 38 140 151

PBT 899 925 782 2,772 3,961

Profit attributable to shareholders

661 635 555 1,964 2,697

EPS* 8 sen 8 sen 7 sen 25 sen 34 sen

EBITDA 1,099 1,032 956 3,302 4,364

EBITDA margin 31% 29% 29% 31% 37%


Market Environment – Key Spreads (Olefins & Derivatives)

0

100

200

300

400

500

600

700

Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14

Ethylene LDPE HDPE LLDPE

0

100

200

300

400

500

600

700

800


MEG PX Benzene

9


0

100

200

300

400

500

600

700

800


Methanol Urea Ammonia

Market Environment – Prices (Fertilisers & Methanol)

10


Methanol Feedstock Supply Chain

Field 2

New Field 1

New Field 2

Field 1

Field 2

11

Multiple gas fields

Cluster 2

Cluster 1

Field 1

FPSO

New Pipeline Project

To Other Facilities

Cluster 3

Upstream Supplier PCG


For further enquiries please contact us at:

PETRONAS Chemicals Group BerhadLevel 14, Tower 1, PETRONAS Twin Towers KUALA LUMPUR CITY CENTRE, 50088 KUALA LUMPUR, MALAYSIA

Fax: +603 2331 [email protected]

Nor Shahda Zakaria, Head of Investor RelationsTel: +603 2331 2615

Liew Lai JingTel: +603 2331 7899

Izan Hajar IshakTel: +603 2331 9366


© 2014 PETROLIAM NASIONAL BERHAD (PETRONAS)

All rights reserved. No part of this document may be reproduced, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the permission of the copyright owner.

Thank You

www.petronaschemicals.com.my

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QUARTERLY RESULTS ANNOUNCEMENT · 2014-11-24 · Division –Name/OPU/HCU/BU (acronym) ; Name of Presenter ©Petroliam Nasional Berhad (PETRONAS) 2014 1 QUARTERLY RESULTS ANNOUNCEMENT