KUALA LUMPUR: Petronas Chemicals Group Bhd (PetChem) expects another exciting year, while remaining cautious in view of the potential impacts of high inflation and other uncertainties.
The company, according to managing director and chief executive officer Mohd Yusri Mohamed Yusof, would continue to deliver operational and commercial excellence, advance its sustainability efforts and explore new growth opportunities.
PetChem said it had recorded a commendable performance in 2022 against geopolitical conflicts, market volatilities and general industry challenges.
Yusri said the company continued to demonstrate operational and commercial resilience.
This is despite uncertainties in the energy and commodity markets resulting in a surge in crude oil and petrochemical prices, along with China's persistent zero-Covid policy and higher cost of operations driven by increased energy and logistics costs.
The company recorded a production volume of 10.4 million tonnes per annum (tpa), sales volume of 8.3 million tpa and continued its excellent track record on safety.
It closed 2022 with a record revenue of RM29.0 billion and net profit of RM6.3 billion.
"We are pleased to have delivered a solid performance despite numerous challenges," Yusri said after PetChem's annual general meeting today.
"Guided by our two-pronged strategy to sustain our strength in basic petrochemicals and selectively diversifying into specialties, we look forward to capturing new revenue streams and strengthening our position in the region," he added.
Additionally, PetChem highlighted that 2022 was a significant year in terms of growth.
The company's landmark acquisition of Sweden-based Perstorp Group resulted in further diversification of its product offerings, specifically for its specialty chemicals portfolio.
PetChem launched BRB Group's new lube oil additives manufacturing facility in the Netherlands to serve as a global lubricant oil additives and chemicals hub for it.
Two projects achieved the status of Final Investment Decision namely the development of a melamine plant in Gurun, Kedah and expansion of the 2-Ethylhexanoic Acid (2-EHA) plant in Gebeng, Pahang.
Yusri said the addition of Perstorp Group marked a major milestone, which will see over 130 new product offerings, seven manufacturing sites globally and more than 1,500 new members coming into the PetChem family.
He noted that PetChem had also established a new specialty chemicals division to manage and steer critical strategic priorities supporting its long-term aspirations within this space.
On sustainability, Yusri said PetChem had enhanced its commitment towards sustainability in 2022 and surpassed its short-term target to reduce its Scope 1 and Scope 2 GHG emissions by 100,000 tonne carbon dioxide equivalent (tCO2e) by 2024.
The company said through various efforts such as process optimisation and catalyst upgrades, it had achieved a cumulative reduction of more than 108,000 tCO2e thus far.