PETRONAS Chemicals Group Berhad

Transcription

1 PETRONAS Chemicals Group Berhad March 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.

2 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. 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 feel necessary, without prior notice. We expressly disclaim all liabilities whatsoever for any direct, indirect, special or consequential loss or damages howsoever resulting directly or indirectly from the access to or the use of this MATERIALS and the reliance on the MATERIALS contained herein. You should rely on your own evaluation and assessment 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 an invitation 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 for petrochemicals, plant turnaround activity and costs, investments in safety and operational risk, increase in turnaround activity and impact on production, 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 such as "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 and countries in which we transact business internationally, increases in regulatory burdens in Malaysia and such countries, changes in import control or import duties, levies or taxes in international markets or in Malaysia, and changes in prices or demand for products produced by us, both in Malaysia and in international markets, as a result of competitive actions or economic factors. Such forward looking statements are also subject to the risks of increased costs in related technologies and such technologies producing expected results, and performance by third parties in accordance with contractual terms and specifications. Should one or more of these uncertainties or risks, among others, materialize, actual results may vary materially from those estimated, anticipated or projected. Specifically, but without limitation, capital costs could increase, projects could be delayed, and anticipated improvements in capacity or performance may not be fully realised. Although We believe that the expectations of management as reflected by such forward looking statements are reasonable based on information currently available, no assurances can be given that such expectations will prove to have been correct. Accordingly, you are cautioned not to place undue reliance on the forward looking statements. We undertake no obligation to update or revise any of them, whether as a result 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 to others at any time without the prior written consent of PCG. 2

3 PETRONAS Chemicals Group Berhad Company Overview Group Performance Outlook 3

4 A Leading Chemical Producer in the region Overview First plant in 1985 Over 10.8 million tons per annum (mtpa) production capacity Made up of 24 subsidiaries, partially owned companies & associated companies Over 4,400 employees Listed on the main market of the Bursa Malaysia in November 2010 Largest integrated petrochemicals producer in SEA Location of facilities Gurun THAILAND Kertih Gebeng SINGAPORE MALAYSIA Bintulu Labuan BRUNEI Sipitang INDONESIA Business Segments Olefins and Derivatives Integrated Petrochemical Complexes ( IPC ) in Kertih and Gebeng. Total 4.9 mtpa production capacity Primarily ethane and propane gas feedstock Produces polyethylene, propylene, glycols, paraxylene, MTBE and other derivatives End applications in packaging film, plastic bottles, gasoline additive, performance chemicals Fertilisers and Methanol Complexes in Gurun, Bintulu, Labuan and Kertih. Total 5.8 mtpa production capacity Project Samur, a new world-scale fertiliser plant under construction in Sipitang, Sabah Based on methane gas feedstock Produces ammonia, urea and methanol End applications in refrigerant, fertilisers, formaldehyde, and solvents 4

5 PCG Board of Directors Datuk Wan Zulkiflee Chairman Vimala V.R. Menon Independent Non-Executive Director Chairman, Board Audit Committee Dong Soo Kim Independent Non-Executive Director Ching Yew Chye Independent Non-Executive Director Chairman, Nomination & Remuneration Committee Datuk Dr. Abd. Hapiz Abdullah President/CEO and Executive Director Ir Kamarudin Zakaria Non-Independent Non-Executive Director Rashidah Ahmad Non-Independent Non-Executive Director 5

6 PCG Management Team Datuk Dr. Abd. Hapiz Abdullah President/CEO Farina Farikhullah Khan CFO Abdul Aziz Othman Head, Strategic Planning and Ventures Mohd Yusri Mohamed Yusof Head, Manufacturing Division Akbar Md Thayoob Head, Commercial Division Dr. Ross Gilmour Chief Innovation and Technology Officer 6

7 Our Vision and Strategy Preferred Chemical Company Providing Innovative Customer Solutions Operational Excellence Marketing and Sales Excellence Innovation Excellence OE targets Plant reliability Supplier relationship management Market share Margins Innovative customer solutions Customer relationship management Innovative solutions /products Innovation culture 7

8 Key Competitive Strengths Market Leadership Gas Feedstock Advantage Fully Integrated Production Facilities Strategic Location Market leader in Malaysia Market leadership positions in SEA Lower, stable cost base Minimal impact from crude oil price fluctuations Minimises molecule loss Maximises production efficiency & margins Close to growth markets in the Asia Pacific Logistic synergies Regional producer ranking 4 th 4 th Olefins Methanol in SEA in the world 5 th Polyethylene in SEA 4 th Urea in SEA Ethlyene production cost Ethane cracker (ME) Naphtha cracker (SEA) Crude oil price movement $/mt PCG Value Chain Feed stock Basic Products Downstream Derivatives Increased margin capture Co-located production facilities AP Demand Growth Vs. developed countries Polyethylene 5.8% Methanol 12.4% 3.4% 2.0% Shipping time to China (Xiamen) From Saudi Arabia 19 days From Malaysia 6 days Strong Partnerships Mutually beneficial, based on integrated value chain and proximity to market Technology and international market access Reputation and Support of PETRONAS Integrated O&G company Operations in over 30 countries #75 on Fortune Global % shareholding FY2013 Revenues EBITDA Cash Total Assets $317 bn $123 bn $116 bn $528 bn Experienced Leadership Team Seasoned management team, with significant experience across the petrochemicals value chain In-depth knowledge of the industry Strong track record 8

9 PETRONAS Chemicals Group Berhad Company Overview Group Performance Outlook 9

10 Financial Highlights Resilient revenue profile. Diversified product portfolio, robust customer profile Strong EBITDA Margins relative to peers. Exceeds 30% over the past 3 years Strong cashflow generation. Cash conversion ratio of above 60% Healthy profitability ratios. ROA and ROE exceeding industry average Well-positioned with cash for any opportunities. Net cash position at RM 10.2 billion. Strong Dividend payout policy. Dividend of around 50% of net profits. 10

11 PCG Financial Summary FY2011 FY2012 FY2013 Income Statement (RM m) Revenue 16,237 16,599 2% 15,202 Profit Before Tax (PBT) 5,461 4,550 (17%) 4,547 Profit After Tax (PAT) 4,288 3,837 (11%) 3,504 EBITDA 6,076 5,778 (5%) 5,076 (8%) 0% (9%) (12%) EBITDA margin % 37% 35% 33% Others Earnings per share (RM) Dividends per share (RM) (6) Shareholders equity (RM m) 18,092 20,311 21,736 ROE 21% 17% 14% ROA 33% 31% 25% Capex / sales 5% 6% 11% Cash conversion 88% 83% 66% (1) Unaudited results (2) Excludes interest income, share of associates and other exceptional items (3) ROE = net profit attributable to shareholders / shareholders equity (4) ROA = NOPAT / fixed assets (5) Cash conversion = (EBITDA Capex) / EBITDA (6) Interim dividend for financial year2013 with entitlement date on 10 th Sep 2013 (8sen) & 25 th Feb 2014 (12sen) 11

12 Group Performance Plant Utilisation (%) 76.1% 82.5% 77.9% Revenue, EBITDA (RM million) and EBITDA Margin (%) 37% 35% 33% 6,076 5,778 5, (1) (1) Unaudited FY2013 Financial results 12

13 PETRONAS Chemicals Berhad Company Overview FY2013 Group Performance Outlook 13

14 Future Growth Sabah Ammonia and Urea (SAMUR) Project Description New world-scale, green field, ammonia and urea production facility Cost USD 1.5 billion Products/Capacity Urea (1.2 mtpa), Ammonia (0.74 mtpa) Product Usage Fertilizers, Nitrile Gloves Target Commission 2015 Aroma Chemicals Project Description Aroma ingredients complex at existing Kuantan facilities. Cost USD 500 million Products/Capacity Citral, L-menthol and citronellol (capacity to be confirmed post FID) Product Usage Flavors, fragrances, food ingredient, feed ingredient Target Commission 2016 Refinery and Petrochemical Integrated Development (RAPID) Project Description Cost Products/Capacity Product Usage Target Commission Specialty chemicals and polymers in PETRONAS s RAPID project To be confirmed post FID Elastomers, hydrogen peroxide, C4 co-monomer, oxo-products, specialty-grade polymers (capacity to be confirmed post FID) Synthetic rubber, bleaching agent, disinfection, plasticizer, tyres, footwear, adhesive, electrical cable, car component and sealings, additive for lubricating oil, etc. To be confirmed post FID 14

15 Market & Industry Outlook 2014 Outlook Limited Ethylene and Polymer supplies. Industry Trends Petrochemical industry cycle on uptrend Balanced supply demand for MEG. Limited shale gas impact to Asia Pacific region Reduced demand for Paraxylene from the PTA sector and new plant startup. Balanced supply demand for Urea. Market correction expected in the Methanol market. Demand growth shift to Asia China remains is world s largest consumer of petrochemicals Limited immediate impact of MTO/CTO projects in China 15

16 2014 In Focus Flawless execution of turnarounds Improved plant performance for Mega Methanol facility Expanding market presence in the region Smooth progress of SAMUR project as per milestones 16

17 Thank You For further enquiries please contact us at: PETRONAS Chemicals Group Berhad Level 14, Tower 1, PETRONAS Twin Towers KUALA LUMPUR CITY CENTRE, KUALA LUMPUR, MALAYSIA 17