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KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) recorded revenue of RM28.7 billion for the full year ended December 31, 2023 (FY23), a marginal decline against RM29.0 billion posted in FY22 amidst a challenging year for the global chemical industry. In a statement, the company said the moderating economic growth and slower-than-anticipated recovery in China weighed in on the industry, leading to lower product demand and softening prices. Concurrently, geopolitical tensions kept energy prices high, resulting in higher feedstock costs and margin compression. PCG registered a net profit of RM1.8 billion, declining against RM6.3 billion in FY22. Plant utilisation was recorded at 85 per cent compared to the previous year’s 89 per cent in the face of operational challenges, as well as several statutory turnarounds and maintenance activities undertaken during the year. In the fourth quarter (Q4) of FY23, revenue improved by 6 per cent quarter-to-quarter (QoQ) to RM7.2 billion on higher production and sales volumes. However, net profit for Q4 declined to RM142 million on lower product spreads and higher energy and utilities costs. PCG announced a second interim dividend payout of 5 sen per share, amounting to RM400 million. The total dividend declared in FY23 amounts to RM1.0 billion, representing 61.3 per cent of the net profit. PCG managing director and chief executive officer Mazuin Ismail said FY23 was a challenging year for the company, both on the market and operational fronts. “As we navigated a very volatile chemicals market throughout the year, internally, we faced interruptions at a few of our plants, which led to a weaker performance in our olefins and derivatives (O&D) and fertilisers and methanol (F&M) segments. “Simultaneously, the specialties segment continued to be impacted by prolonged destocking and intensified competition from Chinese producers. “Despite the persistent low spreads and operational challenges, we remain resilient with a healthy financial position, enabling us to exceed our commitment to our shareholders,” Mazuin said in a statement. On the chemicals market outlook, he said, the challenges seen in 2023 are expected to continue into 2024 as economic recovery is expected to remain sluggish but with pockets of opportunities in various sectors. “Ethylene prices should see some support later in the year as consumption improves and drives the demand for polyethylene in packaging applications. “On the F&M side, urea prices are expected to be stable, supported by planting season in India and the continued ban on urea exports from China. “Methanol prices may ease as downstream demand is expected to remain soft, likewise for specialty chemicals,” Mazuin said. He said the chemicals industry is cyclical, and PCG expects the current downcycle will turn around as demand catches up with supply. “We have successfully resolved most of our operational challenges and are strategically positioning ourselves to seize opportunities as the market rebounds,” he said further. On growth projects, Mazuin stated that performance test runs are ongoing at the petrochemical facilities in Pengerang. “We are also looking forward to achieving commercial operations at other new plants this year, namely the melamine plant in Gurun, Kedah, the specialty chemicals plant in Sayakha, India, for the production of pentaerythritol and calcium formate, as well as the expansion of the 2-Ethylhexanoic Acid (2-EHA) plant in Gebeng, Pahang, through our joint venture (JV) company, BASF Petronas Chemicals. “These three facilities, with a combined annual capacity of about 130,000 metric tonnes per annum, mark several milestones in our 2-pronged strategy towards achieving sustainable growth,” he said.

KUALA LUMPUR: UEM Group Bhd’s subsidiary Cenergi SEA Bhd has signed a 21-year renewable energy virtual power purchase agreement (VPPA) with China-based GDS Holdings Ltd, a leading developer and operator of high-performance data centres in Asia. The agreement positions GDS among the first cohort of green power off-takers in Malaysia under the Corporate Green Power Program (CGPP), which Malaysia’s Energy Commission administers. The CGPP allows for a total of 800MWac of solar power to be developed by solar producers and secured by corporate off-takers in Peninsula Malaysia. GDS has subscribed to 22.5MWac of renewable power for its Nusajaya Tech Park Data Center Campus in Johor. The partnership with Cenergi empowers GDS to claim renewable energy credits, facilitating reductions in greenhouse gas emissions and advancing its target of achieving net-zero carbon emissions by 2030. The renewable energy procured through this agreement will be supplied by Cenergi’s 29.99MWac large-scale solar photovoltaic farm in Kedah will be operational by the fourth quarter Q4) of 2025. Cenergi group chief executive officer Hairol Azizi Tajudin said the company looks forward to a stronger partnership with GDS in Malaysia’s renewable energy journey. “This collaboration underlines our dedication to sustainability and fits perfectly with our goal of promoting renewable energy projects. “By supplying GDS with green electricity from our upcoming solar farm, we are not just helping them reach their net-zero emissions target but also contributing to Malaysia’s larger plan for a greener energy mix. “We believe in the positive impact of such partnerships in creating a more sustainable future for all,” he said in a statement. Synergy is Malaysia’s largest biogas player, solar power producer and diversified renewable energy developer, specialising in reducing carbon emissions by developing and investing in renewable energy and energy efficiency projects, making it a well-suited collaborator for GDS’s sustainability initiatives. Through this collaboration, GDS anticipates a reduction in its carbon footprint by up to 38,000 tonnes of CO2 equivalent per year, which is equivalent to eliminating CO2 emissions from approximately 8,400 petrol-powered passenger vehicles driven in a year and 7,400 homes’ electricity use for one year. Combined with GDS’s existing green direct current (DC) technologies, this initiative establishes a foundation for further reducing carbon emissions and increasing the proportion of renewable energy usage. GDS chief executive officer William Huang said collaborating with Cenergi as pioneers in Malaysia’s renewable energy VPPA exemplifies the company’s commitment to fostering sustainability within the industry. “As a first mover in Johor with our Nusajaya Tech Park Data Center Campus and various ongoing projects, this endeavour signifies a stride forward in our journey towards achieving net zero emissions and contributing to greening the electricity grid. “This partnership not only underscores our dedication to environmental stewardship but also reinforces our position as leaders in driving sustainable innovation within our sector,” he said. The renewable energy procured from Cenergi’s solar farm will also support Malaysia’s goal of having 31 per cent renewable energy in its national energy mix by 2025, as outlined in the National Energy Transition Roadmap (NETR).

KUALA LUMPUR: Leading oil and gas (O&G) services provider Deleum Bhd posted a net profit of RM45.7 million for the financial year ended December 31, 2023 (FY23) from RM 42.1 million last year. The net profit increased marginally due to higher income tax expenses and non-controlling interests. The company’s revenue increased 13.5 per cent in FY23 to RM792.0 million from RM698.0 million the previous year, driven primarily by a strong revenue contribution from the power and machinery segment, which generated RM668.0 million for the year. Pre-tax profit grew 25.1 per cent to RM84.9 million for FY23 from RM67.9 million previously, in tandem with an increase in group revenue. Group chief executive officer Rao Abdullah said the company’s strategic initiatives yielded another year of solid financial performance. “We have plans lined up for FY24 to accelerate growth and strengthen our position in the industry. “Our commitment to fostering growth and creating value for all stakeholders is unchanged. We are committed to capitalising on new opportunities, optimising our resources, and encouraging innovation to propel Deleum to greater success,” he said in a statement. Alongside the sturdy financial performance, the company declared a second interim single-tier dividend of 3.70 sen per share in respect of FY23, payable on March 29, 2024. With the first interim single-tier dividend of 2.00 sen paid on September 29,  2023, Deleum declared a total dividend of 5.70 sen per share for FY23. A dividend payout of RM22.9 million represents 50.0 per cent of FY23 net profit. Deleum has maintained a strong balance sheet and continues to achieve healthy sales performance to power its core businesses. As of FY23, Deleum’s net cash position has further strengthened, with cash and bank balances of RM215.9 million exceeding total borrowings of RM2.4 million, compared to RM178.0 million and RM8.8 million on December 31, 2022, respectively. Shareholders’ equity increased to RM413.4 million as of December 31, 2023, up from RM388.8 million as of December 31, 2022. The company’s firm orderbook currently stands at RM552.6 million, consisting of works and equipment to be delivered within the next 24 months.

KUALA LUMPUR: Pecca Group Bhd’s (PGB) wholly-owned subsidiary Pecca Aviation Services Sdn Bhd (PASSB) has signed a distribution agreement and an agency agreement with Global Component Asia Sdn Bhd (GCA) in establishing a strategic partnership that will elevate the standard of aircraft interior maintenance, repair, and operations (MRO) in key global markets. The agreements build on PASSB and GCA’s memorandum of understanding (MoU) signed in May 2023, where both parties agreed to engage in joint marketing efforts to promote PGB’s aircraft seat cover solutions for global civil and defence markets. The partnership will see PASSB delivering aircraft interior solutions to GCA’s roster of prominent aviation customers which includes airlines and MRO players. PASSB and GCA will work together to serve key markets including Malaysia, France, the United States of America, the United Kingdom, and Indonesia. By strategically targeting these regions, GCA and Pecca Aviation aim to offer comprehensive aviation interior solutions to a diverse range of clients, enhancing the overall flying experience for passengers and optimising operational efficiency for airline operators. PGB executive director Teoh Zi Yi said the partnership with GCA will accelerate the global expansion of PASSB. “Our shared commitment to innovation and quality will enable us to deliver exceptional results for aviation players across Malaysia, France, the United States of America, the United Kingdom, and Indonesia,” he said in a statement. The signing ceremony was held at the Singapore Airshow 2024, witnessed by Malaysia’s Ministry of Defence deputy secretary general (policy) Mohd Yani Daud, the High Commissioner of Malaysia to Singapore Datuk Dr Azfar Mohamad Mustafar, and the National Aerospace Industry Corporation Malaysia (NAICO Malaysia) chief executive officer professor technologist Shamsul Kamar Abu Samah. GCA chairwoman Datuk Nonee Ashirin said this collaboration with PASSB represents a significant step forward in the company’s commitment to providing top-tier aviation solutions. “With their proven track record and expertise in the industry, we are confident that together, we will set new standards for aircraft interior excellence,” she said. Listed on Bursa Malaysia, PGB has been involved in the upholstery industry for over 25 years. The company is a one-stop centre for styling, manufacturing, distributing, and installing upholstery for seat covers and interior products for a global customer base, including Toyota and Nissan. In Malaysia, PGB is the largest leather upholstery supplier serving the automotive market. Shamsul Kamar said the partnership marks a pivotal moment for Malaysia’s aerospace industry and drive towards the objectives outlined in the Malaysia Aerospace Industry Blueprint 2030. “This momentous occasion signifies a significant leap forward for Malaysia’s aerospace industry and heralds a new era of collaboration, innovation, and prosperity,” he said.