KUALA LUMPUR (April 21): Petronas Chemicals Group Bhd's (PetChem) sustainability strategy has been making "good progress" and has been expanded in scope to align with economic, environmental, and social goals underpinned by strong governance.
In a statement released in conjunction with the petrochemicals group’s annual general meeting (AGM) on Thursday (April 21), PetChem managing director and chief executive officer (CEO) Mohd Yusri Mohamed Yusof said the group had achieved a corporate sustainability milestone in 2021 by establishing its own Net-Zero Carbon Emissions (NZCE) 2050 Roadmap.
PetChem’s NZCE 2050 Roadmap, which is chemical industry specific, will guide its longer-term strategic decision-making on climate impact, business resilience, as well as opportunities from climate change and circular economy.
“Under the roadmap, which is also aligned to Petronas’ net-zero aspirations, PCG also set new carbon-reduction targets: a 20% reduction by 2030, another 60% by 2040 and finally, net-zero by 2050,” the statement said.
On the social front, PetChem continues to invest in employees and community well-being through initiatives that have benefited more than 300,000 individuals, including the distribution of a Covid-19 Relief Package to aid those affected by the pandemic, flood-relief initiatives, public education on plastic and effective waste management, mangrove conservation and biodiversity programme, among others.
“As we transition to an endemic phase this year, we remain cautious in view of the rising oil and commodity prices as well as geopolitical tensions that may impact the global economy. We will continue our operational and commercial excellence, cost optimisation efforts and pursue growth opportunities in 2022.
“We are confident that our solid fundamentals will enable us to maximise opportunities while navigating uncertainties in a post-pandemic world, while continuing to create sustainable value for all our stakeholders,” Mohd Yusri said.
He pointed out that PetChem had closed 2021 with its highest-ever profit after tax (PAT) of RM7.3 billion since its incorporation along with the highest dividend per share and payout ratio since its 2010 public listing at 56 sen apiece, including a special dividend of 10 sen per share in conjunction with PetChem’s 10th anniversary.
“The total dividend amounting to RM4.5 billion represents a dividend payout ratio of 61% of profit after tax and non-controlling interests (PATANCI), above our dividend policy of 50% PATANCI.
“Our two-pronged strategy of sustaining our strength in basic petrochemicals and diversifying into derivatives, specialty chemicals and solutions continued paving the way towards a strong performance.
"Our competitive advantage from our integrated facilities, logistical edge, diverse portfolio, regional footprint and strong customer relationships were key to this performance,” said Mohd Yusri.
The statement also highlighted PetChem’s commitment to operational excellence in its plant operations and safety as it had sustained a best-in-class plant utilisation rate at 93% and recorded a 10.4 million tonne per annum (tpa) production volume whilst maintaining an excellent safety record amid Covid-19 challenges.
At the time of writing, PetChem shares were up 22 sen or 2.14% to RM10.52, valuing the petrochemicals group at RM84.16 billion. Year to date, the counter has appreciated by RM1.74 or 19.86% from RM8.76.