KUALA LUMPUR: Despite the highly uncertain global outlook, Petronas Chemicals Group Bhd (PetChem) continues to demonstrate resilience as evident in its first-quarter 2020 (Q1 2020) results by maintaining operational efficiency, customer centricity and diverse product portfolio.
PCG managing director and CEO Datuk Sazali Hamzah said the group’s solid operational and commercial capabilities allow it to be responsive to market changes.
“We have been able to circumvent the disruptions from lockdowns that are happening worldwide and sustain our business,” he said in a statement today, following PCG’s virtual 22nd annual general meeting, on the company’s performance for the financial year ended Dec 31, 2019.
The AGM was chaired by PCG chairman Datuk Md Arif Mahmood who is also Petronas’ executive vice-president and CEO downstream.
Sazali shared with the shareholders the company’s performance and operations last year, its growth plans as well as the outlook for the year.
“The year 2020 started off as an unprecedented one for most industries in the wake of the Covid-19 pandemic followed by the Opec+ fallout which have heightened economic as well as market uncertainties. Product prices will generally remain under pressure in this difficult environment.
“We believe that these challenges are temporary and the market will gradually recover towards the end of the year and into 2021. Hence, it is imperative that we remain resilient as we face the full impact of the pandemic and subsequent economic downturn. We are confident that our strong fundamentals will take us through this challenging period,” said Sazali.
On PCG’s growth strategy, Sazali explained that PCG continues to pursue a two-pronged strategy to deliver sustainable long-term growth for its business; namely to sustain strength in basic petrochemicals and to diversify into derivatives as well as specialty chemicals and solutions to add value to customers and benefit from higher margins.
The company also aims to deliver incremental value through the expansion of our portfolio, he said.
Towards this end, PCG according to him acquired Da Vinci Group (DVG), the world’s largest independent producer and formulator of silicones, lubricant oil additives and chemicals.
“With DVG in its fold, PCG has a ready-made business in high-growth end markets such as personal care, coatings, construction and healthcare. “This will open PCG to new markets and customers, further expanding its geographical footprint.
“Our Pengerang Integrated Complex (PIC) petrochemical project is another platform to provide further growth opportunities in derivatives and specialty chemicals. We are gearing for full start-up towards commercial operations. However, this will depend on how the market recovers from the pandemic,” added Sazali.
Further accelerating its growth agenda, PCG also achieved two Final Investment Decisions (FIDs) for the development of a butadiene derivative plant in PIC and a specialty chemicals plant in Kertih Integrated Petrochemical Complex.
This will enable the group to move across the value chain and get closer to its end users, effectively bringing it closer towards becoming a total solutions provider, he said. – Bernama
source https://www.thesundaily.my/business/petronas-chemicals-displays-resilience-amid-uncertain-global-outlook-HC2589779
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