Petronas Chemical Reports Whopping RM1 Billion Loss For Second Quarter
Revenue for the quarter fell 16% quarter-on-quarter to RM6.4 billion, impacted by lower sales volumes and average product prices. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) slumped 56% to RM395 million, mainly due to weaker product spreads for urea and methanol and reduced contribution from Pengerang Petrochemical Company Sdn Bhd (PPCSB), which also faced unrealised foreign exchange losses.
The losses were further compounded by an impairment of assets at PCG's Swedish subsidiary Perstorp, as well as finance expenses linked to changes in the timing of payments for trade payables at PPCSB.
PCG's plant utilisation rate dropped to 77% from 94% in the previous quarter, as feedstock supply disruptions and repair and maintenance works impacted production. Among the affected facilities was PC Fertiliser Kedah, which faced feedstock shortages due to a gas pipeline incident at Putra Heights — now fully resolved as of June 2025.
CEO Mazuin Ismail noted that the group had also proactively shut down PC Ethylene for vessel wall rectification and scaled back operations at PC Aromatics in response to unfavourable market economics.
Despite the weak quarter, PCG continues to push ahead with its strategic growth initiatives. The Melamine plant in Gurun, Kedah is now ready for start-up, while the Isononanol (INA) plant in Pengerang, Johor achieved Commercial Operation Date on 12 August 2025. The INA facility, which produces an oxo-alcohol used in plasticiser production, will complement Perstorp's offerings for the Asia Pacific market.
PCG is also conducting a strategic portfolio review, intensifying cost optimisation and organisational rightsizing, and reviewing investments in joint ventures and associates to enhance long-term resilience.
The group declared an interim dividend of 3 sen per share — amounting to RM240 million — payable in September, underscoring its continued commitment to shareholders despite the challenging environment.
Looking ahead, Mazuin said that while oversupply, geopolitical tensions, and tariff pressures are expected to persist, demand growth in Asia driven by population and urbanisation trends offers long-term opportunities. 'Our fundamentals remain strong, and our value creation initiatives have already delivered more than RM200 million in EBITDA improvement year-to-date,' he said.
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