Petronas Chemicals posts RM1.08b 2Q loss on weaker sales, asset impairments
The integrated chemicals producer said the net loss was due to lower earnings before interest, tax, depreciation and amortisation (Ebitda), impairment of assets at Perstorp Holding AB and unrealised foreign exchange loss from revaluation of shareholders' loan to Pengerang Petrochemical Company Sdn Bhd (PPCSB) and finance expenses arising from adjustments of timing of payment for trade payables at PPCSB.
Its revenue fell by 17 per cent to RM6.44 billion from RM7.73 billion previously, mainly due to lower sales volumes, the strengthening of the ringgit against the US dollar and lower product prices.
PCG recorded a lower plant utilisation rate of 77 per cent compared to 89 per cent in the corresponding quarter due to feedstock supply disruption at PC Fertiliser Kedah as well as higher plant repair and maintenance activities during the quarter, resulting in lower production volume.
For the six month period, PCG also recorded a net loss of RM1.10 billion from a net profit of RM1.45 billion year-on-year, while revenue slipped by seven per cent to RM14.09 billion against RM15.23 billion previously.
The lower revenue is largely due to foreign currency translation following the strengthening of the ringgit against the US dollar and lower average product prices.
Managing director/chief executive officer Mazuin Ismail said the 2Q 2025 presented several operational challenges, both internal and external, that impacted its plants' performance.
Internally, he said PCG proactively shut down PC Ethylene for vessel wall rectification without significantly affecting its commitments to customers.
'We also decided to proactively scale back operations at PC Aromatics due to unfavourable economics.
'On the external front, our plant at PC Fertiliser Kedah was affected by the feedstock supply disruption following the gas pipeline incident at Putra Heights. The disruption has been resolved and operation has been fully restored in June 2025,' he said in a statement.
Looking ahead, while market conditions remain challenging, we are confident that our strong fundamentals combined with the initiatives currently underway will continue to strengthen our resilience,' Mazuin added.
PCG has declared a first interim single-tier dividend of three sen per ordinary share for the financial year of 2025. The dividend amounting to RM240 million is payable on Sept 10, 2025. — Bernama
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Malay Mail
an hour ago
- Malay Mail
India, China in talks to restart border trade after five-year freeze amid US tariff tensions
NEW DELHI, Aug 14 — India and China are discussing resuming border trade five years after it was halted, foreign ministry officials on both sides have said, as US tariffs disrupt the global trade order. Past trade across the icy and high-altitude Himalayan border passes between the neighbours was usually small in volume, but any resumption is significant for its symbolism. The two major economic powers have long competed for strategic influence across South Asia. But caught in global trade and geopolitical turbulence triggered by US President Donald Trump's tariff regime, the countries have moved to mend ties. Chinese Foreign Minister Wang Yi is expected for talks in New Delhi on Monday, according to Indian media, after his counterpart Subrahmanyam Jaishankar visited Beijing in July. That, as well as agreements to resume direct flights and issue tourist visas, has been seen as an effort to rebuild a relationship damaged after a deadly border clash in 2020 between their nations' troops. 'For a long time, China–India border trade cooperation has played an important role in improving the lives of people living along the border,' China's foreign ministry said in a statement to AFP on Thursday. It added that the two sides have 'reached a consensus on cross-border exchanges and cooperation, including resumption of border trade'. New Delhi's junior foreign minister, Kirti Vardhan Singh, told parliament last week that 'India has engaged with the Chinese side to facilitate the resumption of border trade'. No restart date was given by either side. Successive US administrations have seen India as a longstanding ally with like-minded interests when it comes to China. India is part of the Quad security alliance with the United States, as well as Australia and Japan. But ties between New Delhi and Washington have been strained by Trump's ultimatum for India to end its purchases of Russian oil, a key source of revenue for Moscow as it wages its military offensive in Ukraine. The United States will double new import tariffs on India from 25 per cent to 50 per cent by August 27 if New Delhi does not switch crude suppliers. Prime Minister Narendra Modi, according to Indian media, might also visit China in late August. It would be Modi's first visit since 2018, although it has not been confirmed officially. Beijing has said that 'China welcomes Prime Minister Modi' for the Shanghai Cooperation Organisation summit opening on August 31. — AFP
Malay Mail
an hour ago
- Malay Mail
RM274,000 frozen chicken feet scam: Company director claims trial in KL court
KUALA LUMPUR, Aug 14 — A company director pleaded not guilty in the Sessions Court here today to a cheating charge involving the supply of frozen chicken feet to China two years ago. R Gopinatan Pillai, 60, was accused of deceiving an individual into believing he could supply frozen chicken feet for export to China, causing the victim to deposit RM273,987.50 into his company's bank account. The offence was allegedly committed at an office unit in Menara Sentral Vista, Jalan Sultan Abdul Samad, here on July 5, 2023. The charge, under Section 420 of the Penal Code, carries a penalty of up to 10 years' imprisonment, whipping and a fine, upon conviction. Judge Hamidah Mohamed Deril set September 2 for mention and bail appeal after Gopinatan, who is currently being held at the Sungai Buloh Prison for another offence, informed the court that his lawyer was absent today and would appeal for bail on the next mention date. Earlier, deputy public prosecutor Batrisyia Mohd Khusri had offered bail of RM30,000 with one surety. — Bernama
Malay Mail
an hour ago
- Malay Mail
EPF posts RM38.92b investment income in first half of 2025, up 3pc
KUALA LUMPUR, Aug 14 — The Employees Provident Fund (EPF) recorded a total investment income of RM38.92 billion for the first half ended June 30, 2025, a three per cent increase from RM37.90 billion in the same period last year. The total investment income included a RM0.44 billion mark-to-market gain on securities that have not been realised, mainly due to foreign exchange rate fluctuations. In line with the EPF's policy, this gain will not be distributable as dividends, the fund said in a statement today. — Bernama
