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Malay Mail
3 days ago
- Business
- Malay Mail
Petronas Chemicals shares slip after posting RM1.08b quarterly loss
KUALA LUMPUR, Aug 14 — Petronas Chemicals Group Bhd (PCG) shares were lower following weaker results in the second quarter ended June 30, 2025 (2Q 2025) after reporting a net loss of RM1.08 billion compared with a net profit of RM777 million a year ago. The integrated chemicals producer said the net loss was due to lower earnings before interest, tax, depreciation and amortisation (EBITDA), asset impairment at Perstorp Holding AB, unrealised foreign exchange loss after revaluing shareholders' loan to Pengerang Petrochemical Company Sdn Bhd (PPCSB) and finance expenses from payment adjustments 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 volume, the strengthening of the ringgit against the US dollar and lower product prices. At 10.33am, PCG share price eased two sen or 0.28 per cent to RM3.58 with 3.77 million shares traded. The counter opened at RM3.55. In a research note today, CIMB Securities Sdn Bhd said overall results fell short of its consensus expectations, with the key variance stemming from lower-than-expected plant utilisation. 'We have cut our FY 2025, FY 2026, and FY2027 forecast earnings by 11.8 per cent, 9.1 per cent, and 8.1 per cent, respectively, to reflect the weaker-than-expected 2Q 2025 results. 'We maintain our 'Hold' rating while lowering our target price (TP) to RM3.45 per share,' it added. Maybank Investment Bank Bhd said PCG turning in a net loss in 2Q 2025 is pretty much in line with its views in early July 2025. 'We reiterate our bearish view on the olefins and derivatives (O&D) subsector due to the ongoing regional oversupply glut (mainly from China). 'We make no changes to our FY 2025-2027 earnings forecasts and maintained a 'Sell' rating with a TP of RM2.59 per share,' it said. Hong Leong Investment Bank Bhd (HLIB) said PCG will continue to operate under an oversupply environment, with muted downstream demand continuing to put on pressure on ethylene prices. 'We slash our FYs 2025-2027 profit forecasts by -43 per cent/-27 per cent/-20 per cent to factor in a lower plant utilisation and sales volume for the O&D segment. 'We expect it to remain loss-making due to subdued product prices amid persistent regional oversupply, weak downstream demand across key end markets, and sustained margin compression from unfavourable paraxylene-naphtha spreads,' the report said. It has a 'Sell' rating with TP of RM2.18 per share, it said. — Bernama
Barnama
3 days ago
- Business
- Barnama
Petronas Chemicals Shares Down Following Weaker 2Q 2025 Results
REGION - CENTRAL > NEWS KUALA LUMPUR, Aug 14 (Bernama) -- Petronas Chemicals Group Bhd (PCG) shares were lower following weaker results in the second quarter ended June 30, 2025 (2Q 2025) after reporting a net loss of RM1.08 billion compared with a net profit of RM777 million a year ago. The integrated chemicals producer said the net loss was due to lower earnings before interest, tax, depreciation and amortisation (EBITDA), asset impairment at Perstorp Holding AB, unrealised foreign exchange loss after revaluing shareholders' loan to Pengerang Petrochemical Company Sdn Bhd (PPCSB) and finance expenses from payment adjustments 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 volume, the strengthening of the ringgit against the US dollar and lower product prices. bootstrap slideshow At 10.33 am, PCG share price eased two sen or 0.28 per cent to RM3.58 with 3.77 million shares traded. The counter opened at RM3.55. In a research note today, CIMB Securities Sdn Bhd said overall results fell short of its consensus expectations, with the key variance stemming from lower-than-expected plant utilisation. 'We have cut our FY 2025, FY 2026, and FY2027 forecast earnings by 11.8 per cent, 9.1 per cent, and 8.1 per cent, respectively, to reflect the weaker-than-expected 2Q 2025 results. 'We maintain our 'Hold' rating while lowering our target price (TP) to RM3.45 per share,' it added. Maybank Investment Bank Bhd said PCG turning in a net loss in 2Q 2025 is pretty much in line with its views in early July 2025.
Barnama
3 days ago
- Business
- Barnama
PCG Faces Headwinds In 2Q, Strategic Moves Underway To Strengthen Resilience
KUALA LUMPUR, Aug 13 (Bernama) -- PETRONAS Chemicals Group Berhad (PCG or the Group), announced its financial results for the second quarter (2Q 2025) and an interim dividend amounting to RM240 million for the financial year ending 31 December 2025. In 2Q 2025, PCG recorded a Loss after Tax (LAT) and a decline in Revenue, having navigated both internal and external disruptions to its operations amid heightened geopolitical tensions in the Middle East and tariff announcements, which affected crude oil prices and weakened the US Dollar. Group Revenue declined 16% quarter-on-quarter to RM6.4 billion, due to lower sales volumes and average product prices. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined 56% quarter-on-quarter to RM395 million, mainly due to lower product spreads for urea and methanol, as well as lower contribution from Pengerang Petrochemical Company Sdn Bhd (PPCSB) following unrealised foreign exchange loss. The Group recorded LAT of RM1.0 billion, due to lower EBITDA, impairment of assets at Perstorp, unrealised foreign exchange loss from revaluation of shareholders loan to PPCSB and finance expenses arising from adjustments of timing of payment for trade payables at PPCSB.
BusinessToday
3 days ago
- Business
- BusinessToday
Petronas Chemical Reports Whopping RM1 Billion Loss For Second Quarter
PETRONAS Chemicals Group Berhad (PCG) posted a Loss After Tax (LAT) of RM1.0 billion for the second quarter of 2025, as the group navigated weaker market conditions, operational disruptions, and asset impairments. To note the group posted RM777 million in profit for the same quarter in the preceding year. 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.
The Sun
3 days ago
- Business
- The Sun
Petronas Chemicals posts RM1.08b net loss in Q2 2025
KUALA LUMPUR: Petronas Chemicals Group Bhd (PCG) posted a net loss of RM1.08 billion in the second quarter ended June 30, 2025 (2Q 2025) from a net profit of RM777 million in 2Q 2024. 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
