This comes on the back of higher product prices and continued strong demand.

Revenue also increased by 42% to RM6.63 billion from RM4.67 billion previously, largely due to higher product prices, in tandem with the improved crude oil price and tight supply, it said in a filing with Bursa Malaysia today.

In a separate statement, PCG said the solid financial performance was mainly attributed to higher prices across all product segments, especially ammonia and urea, underpinned by elevated energy prices amid continued strong global demand and supply disruptions.

Its earnings before interest, taxation, depreciation and amortisation (EBITDA) margin was comparable at 37% (Q1 2021: 36%) due to higher product spreads.

“Sales volume remained high in Q1 2022 at 1.9 million tonnes despite the lower plant utilisation rate of 87% (Q1 2021: 90%) as a result of higher statutory turnaround and maintenance activities,” it said.

Commenting on the results, managing director and chief executive officer Yusri Mohamed Yusof said compared to a year ago, average product prices were higher by 20-60%.

“While we observed some seasonal moderation of prices in certain products compared to Q4 2021, product prices remained firmly robust as the Russia-Ukraine conflict continued to escalate, further supported by strong demand,” he said.

He said despite market volatility and supply chain challenges, PCG’s vigilance and commercial excellence strategy enabled the group to meet sales targets even as certain cities in China were under lockdown for several weeks.

On the group’s growth projects, Yusri said the group had commenced start-up operations at the Pengerang Integrated Complex as planned in early May and the commissioning activities were progressing accordingly.

PCG recently acquired the entire equity interest in specialty chemicals group Perstorp Holding AB from Financière Forêt SARL for a base purchase of 1.538 billion euros (RM7.018 billion) cash.

Yusri said the acquisition of Perstorp is a major milestone for PCG in establishing a key platform to diversify into the specialty chemicals industry and capture new growth opportunities.

“This acquisition will also provide us with critical talent, know-how, technological platforms and proven customer channels to address the pressing needs of the market for more sustainable solutions,” he said.

On prospects, PCG anticipates product prices for olefins and derivatives to remain stable amid a regional turnaround, while fertiliser and methanol prices are expected to be moderately supported by steady demand.