Latest news with #Perstorp
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.
New Straits Times
3 days ago
- Business
- New Straits Times
Petronas Chemicals posts RM1.08b net loss in Q2 on operational, market challenges
KUALA LUMPUR: Petronas Chemicals Group Bhd posted a weaker earnings in the second quarter of 2025 due to internal and external disruptions to its operations. This comes amid heightened geopolitical tensions in the Middle East and tariff announcements, which affected crude oil prices and weakened the US dollar. The chemicals producer posted a net loss of RM1.08 billion for the quarter ended June 30, 2025, compared with a net profit of RM777 million a year earlier. This was mainly dragged by a 56 per cent drop in lower earnings before interest, tax, depreciation and amortisation (Ebitda) to RM396 million. The loss was also affected by a remeasurement loss from adjustments in the timing of trade payable payments and an impairment of assets at Perstorp. It was further impacted by higher unrealised foreign exchange losses from the revaluation of a shareholder loan to a joint operation, as well as increased depreciation and finance costs from the same entity. The revenue also fell nearly 17 per cent to RM6.4 billion from RM7.7 billion last year due to lower sales volumes and average product prices. Petronas Chemicals declared first interim dividend of three sen amounting to RM240 million that will be paid on Sept 10, 2025. For the first half of 2025, the group revenue declined 7.0 per cent to RM14.1 billion largely on foreign currency translation following the strengthening of the ringgit against the US dollar and lower average product prices. It recorded net loss of RM1 billion on adjustment of timing of payment for trade payables at Pengerang Petrochemical Company Sdn Bhd, impairment of assets at Perstorp, as well as unrealised foreign exchange loss on revaluation of shareholders loan, higher depreciation and finance costs at Pengerang Petrochemical. In a statement, Petronas Chemicals managing director and chief executive officer Mazuin Ismail said the results reflect several operational challenges both internal and external, that impacted the plants' performance. He added that the commodities market remains challenging amid persistent oversupply and ongoing trade as well as geopolitical tensions. "Nevertheless, demand continues to grow, particularly in Asia, driven by population and urban growth. Our Pengerang facility, built to support this growth, is currently operating to meet the creditors reliability test by year-end," he added. Mazuin said that in light of the increasingly dynamic market environment, Petronas Chemicals are undertaking strategic portfolio review across value chain. "While market conditions remain challenging, we are confident that our strong fundamentals combined with the initiatives currently underway will continue to strengthen our resilience," he said.
The Star
3 days ago
- Business
- The Star
PETRONAS Chemicals to undertake strategic portfolio review
KUALA LUMPUR: On the heels of a weaker performance in the second quarter of 2025 (2QFY25), Petronas Chemicals Group Bhd (PetChem) is doubling down on efforts to nagivate an increasingly challenging industry landscape. "In light of the increasingly dynamic market environment, we are undertaking a stategic portfolio review across our entire value chain. "Anticipating further increase in operating costs and substantial capital requirements, we recorded an impairment loss on assets at Perstorp," said PetChem managing director and CEO Mazuin Ismail in a statement. "Looking ahead, while market conditions remain challenging, twe are confident that our strong fundamentals combined with the initiative currenctly underway will continue to strengthen our resilience," he added. In its result review, the group said it faced both internal and external disruptions to its operations amid heightened geopolitical tensions in the Middle East and tariff announcement, which affected crude oil prices and weakened the US dollar. During the quarter under review, the group reported a net loss of RM1.08bil, wihch compared to a net profit of RM777mil in the year-ago quarter. Revenue came in at RM6.44bil, down 16% from RM7.73bil in the year-ago quarter, as sales volume contracted and average product prices fell. The board of directors declared a first interim dividend of three sen per share, with ex date on Aug 26, 2025, and payable on Sept 10, 2025. In the first half of the year, PetChem registered a total net loss of RM1.1bil, as compared to a net profit of RM1.45bil in the year-ago period, while revenue narrowed to RM14.09bil from RM15.23bil in the comparative period. According to the group, the lower revenue was largely owing to foreign currency translation following the strengthening of the ringgit against the US dollar, as well as lower average product prices. Group earnings before interest, depreciation and amortisation (Ebitda) fell 43% to RM1.3bil on lower product spreads and unrealised foreign exchange loss on revaluation of payables at Pengerang Petrochemical Company Sdn Bhd (PPCSB). The group said its net loss of RM1.1bil was on adjustment of timing of payment for trade payables of PPCSB, impariment of assets at Perstorp, unrealised foreign exchange loss on revaluation of shareholders loan to PPCSB as well as higher depreciation and finance costs at PPCSB.
Fibre2Fashion
05-06-2025
- Business
- Fibre2Fashion
Sweden's Perstorp launches Synthetic-EF portfolio
Perstorp, a leading global innovator in specialty chemicals and a wholly owned subsidiary of PETRONAS Chemicals Group Berhad (PCG), announces the launch of its new portfolio of saturated synthetic polyol esters. The range includes three high-performing synthetic esters - Perstorp Synthetic-EF 5, Synthetic-EF 15, and Synthetic-EF 22 - developed to meet the evolving technical, environmental, and performance demands of the lubricant industry. This launch marks the next step towards becoming a recognized leader and supplier of specialty chemicals to the growing synthetic lubricants market. Perstorp, a PETRONAS Chemicals Group subsidiary, has launched its Synthetic-EF portfolioâ€'three biodegradable, high-performance saturated synthetic polyol esters designed for demanding lubricant applications. With REACH registration, a LuSC roadmap, and global support, the portfolio meets technical, environmental, and regulatory needs for sustainable growth. With a strong emphasis on verified environmental performance and supply chain security, Perstorp's Synthetic-EF portfolio empowers lubricant manufacturers to formulate high-performing, application-specific lubricants for the most demanding conditions across a wide temperature range. Built on saturated synthetic polyol esters, the portfolio offers products registered with Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) as biodegradable, along with a roadmap toward Lubricant Substance Classification List (LuSC) listing in compliance with EU Ecolabel standards. Combined with a fully integrated global supply chain and responsive local support, these solutions enable tailored innovations for a wide range of applications - meeting precise technical, regulatory, and environmental requirements. Perstorp Synthetic-EF portfolio overview: Perstorp Synthetic-EF 5 – For demanding low-temperature applications. A saturated synthetic polyol ester, registered with REACH as biodegradable, with an ultra-low pour point and high flashpoint. The product will be tested for biodegradability according to OECD 301. Perstorp Synthetic-EF 15 – For applications that require performance and safety for effective operations. A biodegradable (OECD 301 & registered with REACH) saturated synthetic polyol ester with a high flash point and excellent thermal and oxidation stability. Perstorp Synthetic-EF 22 – For demanding applications across a wide temperature range. A saturated synthetic polyol ester, registered with REACH as biodegradable, with a high viscosity index and low acid number. The product will be tested for biodegradability according to OECD Valentina Serra-Holm, Head of Engineered Fluids Solutions at Perstorp, comments: 'With our long-standing expertise in ester chemistry and vertically integrated production, we're able to offer exceptional consistency and control throughout the value chain. Combined with our global network of application labs and technical experts, we support lubricant manufacturers with tailored solutions and hands-on development. This makes us more than a supplier - we're a true partner in enabling sustainable growth for lubricant manufacturers.' Beyond technical performance, Perstorp's synthetic esters are developed to deliver verified environmental performance - demonstrated through OECD 301, REACH registrations as biodegradable, and a roadmap toward LuSC listing in compliance with EU Ecolabel criteria. With competitive Product Carbon Footprints (PCFs) and ongoing work toward ISCC PLUS certification, we provide lubricant manufacturers with transparent environmental credentials that support compliance with evolving regulatory and market expectations - without compromising on performance. The portfolio is enabled by the recently acquired site in Amsterdam, the Netherlands, and is backed by Perstorp's fully integrated production model - from key intermediates to synthetic esters - ensuring both supply security and consistent product quality. A Platinum Ecovadis rating underscores Perstorp's commitment to responsible operations. With application labs in Sweden, Malaysia, and China, along with a global logistics network and localized technical and sales support, Perstorp enables lubricant manufacturers to scale reliably and innovate with confidence. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (HU)
