Latest news with #MazuinIsmail
The Star
21-05-2025
- Business
- The Star
PetChem dragged by O&D segment amid challenges
PETRONAS Chemicals managing director and chief executive officer Mazuin Ismail. PETALING JAYA: Petronas Chemicals Group Bhd (PetChem) sustained its operational performance with a plant utilisation rate of 94% in the first quarter of 2025 (1Q25), but its bottomline was weighed down by its olefins and derivatives (O&D) segment amid a challenging market landscape. 'To maintain our resilience and competitiveness amid the current industry downtrun, we remain focused on driving excellence. 'Our unwavering comitment to safe and efficient operations across all facilities continues, as we are currently undertaking repair and maintenance activities at several O&D and fertilisers and methanol (F&M) plants,' said PetChem managing director and chief executive officer Mazuin Ismail. He added that the group is closely monitoring the developments with regards to the US tariffs, and assessing their broader implications on overall market dynamics. During the quarter under review, the petrochemicals group recorded a RM18mil net loss, on the back of a revenue of RM7.66bil, which compares to a net profit of RM668mil and revenue of RM7.5bil in the year-ago quarter. The group said in a statement the O&D business had been affected by a utilities supply disruption in Kertih as well as reduced production in Pengerang Petrochemicals Company Sdn Bhd (PPC) due to feedstock unavailability. The segment subsequently reported a loss before interest, tax, depreciation and amortisation of RM43mil, primarily owing to lower contributions from PPC – mainly due to a lower plant utilisation rate and unrealised foreign exchange loss on revaluation of payables. Meanwhile, the group's fertilisers and methanol (F&M) segment saw an improvement in sales and earnings due to stronger product prices, which offset a slight decline in sales volume. 'Tight global supply and robust seasonal demand led to an increase in prices of approximately 13% and 5% for urea and methanol, respectively.' The segment's quarterly revenue rose slightly to RM2.5bil while earnings before interest, tax, depreciation and amortisation (ebitda) gained 22% quarter-on-quarter (q-o-q) to RM892mil, driven by improved product spreads. In the specialities segment, revenue rose 19% (q-o-q) to RM1.6bil on higher sales volumes. Ebitda rose to RM52mil on stronger contribution margins and sales volume.
The Sun
20-05-2025
- Business
- The Sun
Petronas Chemicals reports RM18 million net loss in Q1 as forex weighs
KUALA LUMPUR: Petronas Chemicals Group Bhd reported a net loss of RM18 million in the first quarter ended March 31, 2025 (Q1'25) due to unrealised foreign exchange losses, unfavourable net foreign exchange impact from the specialities segment, among others, despite recording a higher revenue of RM7.66 billion. The group achieved a profit of RM668 million and a revenue of RM7.50 billion in Q1'24. In a Bursa Malaysia filing yesterday, Petronas Chemicals said the quarter's higher revenue was mainly due to higher sales volume, partially offset by the strengthening of the ringgit against the US dollar. It said the reduction in net profit was mainly due to unrealised foreign exchange loss on revaluation of a shareholders loan to a joint operation entity, lower finance income arising from adjustment of timing for payment of trade payables in the preceding quarter and unfavourable net foreign exchange impact from the specialities segment. A higher plant utilisation rate of 94% was recorded compared to 87% in the previous corresponding quarter due to improved plant performance as well as lower statutory plant turnaround and maintenance activities, mainly from fertilisers and methanol segment, resulting in higher production. On prospects, the group said the results of its operations were primarily influenced by global economic conditions and petrochemical product prices, which have a high correlation to crude oil price, particularly for the olefins and derivatives (O&D) segment, utilisation rate of its production facilities and foreign exchange rate movements. The utilisation of production facilities is dependent on plant maintenance activities and sufficient availability of feedstock as well as utilities supply, Petronas Chemicals said 'The group will continue with its operational excellence programme and supplier relationship management to sustain plant utilisation level at above industry benchmark,' it said. Petronas Chemicals anticipates product prices for O&D will be impacted by the implications of the United States (US) tariffs, additional supply from new capacities and weak downstream demand. 'Fertiliser product prices are forecasted to be firm with limited supply from the Middle East amidst seasonal demand from India, Southeast Asia and Australia. 'However, ammonia and methanol product prices are forecasted to be soft due to ample supply and persistent weak demand from industrial and gasoline blending sectors,' it added. For specialties, Petronas Chemicals said the group remains cautious in navigating the challenging market conditions, as we anticipate demand uncertainty to persist across most of our end markets. Commenting on the Q1'25 performance, its managing director and CEO, Mazuin Ismail, said the group's resilience in navigating the challenging market landscape underscores the strength of its diversified portfolio. 'The improvement in earnings before interest, taxes, depreciation, and amortisation reflects our ongoing efforts on operational excellence with commendable plant utilisation rate achieved by our commodities business, despite setbacks in January 2025 that temporarily impacted operations at several plants in Kertih, Kemaman District, Terengganu,' he said. Meanwhile, regarding the implications of US tariffs, Mazuin said Petronas Chemicals is closely monitoring these developments and assessing broader implications on the overall market dynamics. He added that the group remains focused on driving excellence to maintain its resilience and competitiveness amid the current industry downturn. 'Our unwavering commitment to safe and efficient operations across all facilities continues as we are currently undertaking repair and maintenance activities at several O&D and F&M plants,' he said. Mazuin said Petronas Chemicals is also strengthening customer relationships to better meet their evolving needs while upholding strict financial discipline and prudent capital spending. – Bernama
BusinessToday
20-05-2025
- Business
- BusinessToday
PCG Disappoints With Q1 Loss Of RM18 Million, Cites Challenging Market
PETRONAS Chemicals Group Berhad announced its financial results for the first quarter (1Q 2025) in the financial year ending 31 December 2025, reporting a loss of RM18 million against a profit of RM668 million in the previous year's first quarter. The Group sustained its operational performance with plant utilisation rate of 94% in 1Q 2025, comparable to 4Q 2024. Revenue grew 3% quarter-on-quarter to RM7.7 billion driven by higher average prices of urea, methanol, and polyethylene as well as improved sales performance in the specialties segment. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 26% to RM892 million, supported by better spreads for urea, methanol, methyl tert-butyl ether (MTBE) and olefin derivatives, coupled with reduced operational costs. However, Profit After Tax (PAT) declined to RM18 million from RM668 million in the previous quarter, largely due to unfavourable foreign exchange movement. During the quarter, PCG said the Olefins & Derivatives (O&D) segment overcame utilities supply disruption that impacted several plants in Kertih, as well as reduced production at the Pengerang Petrochemicals Company Sdn. Bhd. (PPC) due to feedstock unavailability. These external issues, combined with the limited uplift in product prices amid industry oversupply, resulted in the O&D segment recording a 4% decrease in quarterly revenue to RM3.5 billion. The segment reported Loss Before Interest, Tax, Depreciation and Amortisation (LBITDA) of RM43 million, primarily attributed to lower contributions from PPC, mainly due to lower plant utilisation rate and unrealised foreign exchange loss on revaluation of payables. The Group's Fertilisers & Methanol (F&M) segment recorded an overall improvement in sales and earnings supported by stronger average product prices despite a slight decline in sales volume. Tight global supply and robust seasonal demand led to increase in prices of approximately 13% and 5% for urea and methanol, respectively. The F&M segment recorded a higher quarterly revenue of RM2.5 billion while EBITDA rose 22% quarter-on-quarter to RM892 million, driven by improved product spreads. Commenting on the 1Q 2025 performance, Mazuin Ismail, Managing Director/Chief Executive Officer of PCG, said 'Our resilience in navigating the challenging market landscape underscores the strength of our diversified portfolio. The improvement in EBITDA reflects our ongoing efforts on operational excellence with commendable plant utilisation rate achieved by our commodities business, despite setbacks in January 2025 that temporarily impacted operations at several plants in Kertih.' On the implications of US tariffs to PCG, Mazuin said, 'We are closely monitoring these developments and assessing broader implications on the overall market dynamics.' Related
New Straits Times
20-05-2025
- Business
- New Straits Times
PetChem swings to RM18mil net loss on forex impact, despite higher revenue
KUALA LUMPUR: Petronas Chemicals Group Bhd (PetChem) posted a net loss of RM18 million for the first quarter ended Dec 31, 2025, compared to a net profit of RM668 million in the same period last year. In a statement today, PetChem attributed the loss primarily to unfavourable foreign exchange movements. Despite this, the group's revenue rose three per cent year-on-year to RM7.7 billion in the quarter. "This is driven by higher average prices of urea, methanol, and polyethylene as well as improved sales performance in the specialties segment," it said. PetChem said its earnings before interest, tax, depreciation and amortisation (ebitda) rose 26 per cent to RM892 million. The increase was driven by improved product spreads for urea, methanol, methyl tert-butyl ether (MTBE) and olefin derivatives, alongside lower operational costs. The group said its olefins and derivatives (O&D) segment managed to recover from utilities supply disruptions that affected several plants in Kertih, as well as reduced production at Pengerang Petrochemicals Company Sdn Bhd due to feedstock unavailability. "These external issues, combined with the limited uplift in product prices amid industry oversupply, resulted in the O&D segment recording a 4 per cent decrease in quarterly revenue to RM3.5 billion," it said. Managing director and chief executive officer Mazuin Ismail said the improvement in ebitda reflects the group's ongoing efforts on operational excellence with commendable plant utilisation rate achieved by its commodities business. Moving forward, Mazuin said the group will closely monitor these developments and assess broader implications on the overall market dynamics. "To maintain our resilience and competitiveness amid the current industry downturn, we remain focused on driving excellence. "Our unwavering commitment to safe and efficient operations across all facilities continues as we are currently undertaking repair and maintenance activities at several O&D and F&M plants. "At the same time, we are strengthening customer relationships to better meet their evolving needs, while upholding strict financial discipline and prudent capital spending," he added.
The Star
20-05-2025
- Business
- The Star
PETRONAS Chemicals dragged by O&D segment amid headwinds
KUALA LUMPUR: PETRONAS Chemicals Group sustained its operational performance with a plant utilisation rate of 94% in the first quarter of 2025 (1Q25), but its financial bottomline was weighed down by its olefins and derivatives (O&D) segment amid a challenging market landscape. "To maintain our resilience and competitiveness amid the current industry downtrun, we remain focused on driving excellence. "Our unwavering comitment to safe and efficient operations across all facilities continue as we are currently undertaking repair and maintenance activities at several O&D and fertilisers and methanol (F&M) plants," said PETRONAS Chemicals managing director and CEO Mazuin Ismail. He added that the group is closely monitoring the developments with regards to the US tariffs, and assessing their broader implications on overall market dynamics. During the quarter under review, the petrochemicals group recorded a RM18mil net loss, on the back of revenue of RM7.66mil, which compares to a net profit of RM668mil and revenue of RM7.5mil in the year-ago quarter. The group said in a statement the O&D business had been affected by a utilities supply disruption in Kertih as well as reduced production in Pengerang Petrochemicals Company Sdn Bhd (PPC) due to feedstock unavailability. "These external issues, combined with the limited uplift in product prices amid industry oversupply, resulted in the O&D segment recording a 4% decrease in quarterly revenue to RM3.5bil," it said. The segment subsequently reported a loss before interest, tax, depreciation and amortisation (LBITDA) of RM43mil, primarly owing to lower contributions from PPC - mainly due to lower plant utilisation rate and unrealised foreign exchange loss n revaluation of payables. Meanwhile, the group's fertilisers and methanol (F&M) segment saw an improvement in sales and earnings due to stronger product prices, which offset a slight decline in sales volume. "Tight global supply and robust seasonal demand lead to increase in prices of approximately 13% and 5% for urea and methanol, respectively." The segment's quarterly revenue rose slightly to RM2.5bil while earnings before interest, tax, depreciation and amortisation (Ebitda) gained 22% quarter-on-quarter (q-o-q) to RM892mil, driven by improved product spreads. In the specialities segment, revenue rose 19% (q-o-q) to RM1.6bil due to higher sales volumes. Ebitda improved to RM52mil on stronger contribution margins and increased sales volume.
