Latest news with #RM395
Barnama
13-08-2025
- 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
13-08-2025
- 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
11-08-2025
- Business
- New Straits Times
Y&G Corp units buy four Selangor land parcels worth RM395 mln
KUALA LUMPUR: Y&G Corporation Bhd's wholly-owned subsidiaries, Nusa Wibawa Sdn Bhd and Duta Asiana Sdn Bhd, have acquired four parcels of land worth RM395 million. On the breakdown, Y&G said Nusa Wibawa has acquired three parcels of leasehold land in Sepang, Selangor, with a combined area of approximately 38.45 hectares, from Nurani Saujana Sdn Bhd for RM206 million. It added that Duta Asiana Sdn Bhd has purchased a parcel of land measuring 148.52 hectares in Kuala Selangor, Selangor, from Asian Regal Holdings Sdn Bhd for RM189 million. "Y&G has also acquired one million ordinary shares in Konsep Wawasan Sdn Bhd, representing 100 per cent equity interest in the company, for a cash consideration of RM82 million," it said in a filing to Bursa Malaysia today.
Business Times
19-06-2025
- Business
- Business Times
South Korea's Cuckoo set for Malaysia debut after scaling down IPO
[SEOUL] A subsidiary of South Korean home-appliance maker Cuckoo Holdings is set to go public in Malaysia after a scaled-down offering that is expected to raise RM395 million (S$119.4 million). Cuckoo International (Mal) will begin trading on June 24, two months after postponing its initial public offering (IPO) due to market volatility. The final amount raised may vary as the company is waiting for approval from the bourse to reduce its public shareholding spread to 20 per cent from the current 25 per cent. Its revised offer price of RM1.08 per share, from RM1.29 previously, will value the company at RM1.55 billion. The company's debut will be closely watched for clues on demand for consumption stocks given the tepid retail subscription rate for Cuckoo. Chief executive officer Hoe Kian Choon is confident that its prospects and sizeable market share in the local home-appliance rental segment will draw investors. 'A lot of our investors were happy' that the offering was put off to ride out the volatility sparked by the US tariff announcement in April, Hoe said. 'None of our cornerstone investors left.' While market uncertainty remains high, the situation is 'more stable now,' allowing the company to revive its listing plans, he added. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Hoe, who founded the local company in 2014 as a distributor of Cuckoo products, has grown the business on the strength of its water purifier rental segment. Cuckoo Malaysia also co-creates some new products with other brands for the domestic market. The company's promising outlook prompted its Korean supplier to take up a majority stake in the Malaysian firm. Hoe said that Cuckoo Malaysia has secured nearly a fifth of the local appliance rental market and opportunities to cross-sell products among its one million active-subscriber base would help the company achieve double-digit revenue growth over the next few years. Cuckoo Malaysia's profit after tax for the first nine months of 2024 jumped 75 per cent from the previous corresponding period to RM104 million. Revenue rose 13 per cent. 'Malaysia's market is growing not only in number of households but also in household debt,' Hoe noted. 'Malaysians are looking for the best way to actually maximise their value for money. Rental will be one of the ways for them to enjoy a standard of living.' Korean rival Coway's wholly-owned local unit currently has market leadership in the rental space. Hoe, a former Coway executive, aims to catch up with other Cuckoo offerings including mattresses, massage chairs and air purifiers. Consumer brands that are centred on mass-market affordability have done well in Malaysia. Two of the country's biggest IPOs in the past year were retail chains that catered to customers looking to stretch the dollar – mini-mart operator 99 Speed Mart Retail Holdings and dollar-store chain Eco-Shop Marketing. Hoe said that Cuckoo's business fundamentals remain sound given little exposure to external shocks. While it is vulnerable to a stronger US currency – the company buys stock from its Korean parent in dollars – strong recurring income from its rental segment helps ease the pressure. Cuckoo will use proceeds from the IPO to open new concept stores that will allow cash-and-carry purchases and expand its business in Singapore. BLOOMBERG
Business Times
19-06-2025
- Business
- Business Times
Korea's Cuckoo set for Malaysia debut after scaling down IPO
(Bloomberg) – A subsidiary of South Korean home-appliance maker Cuckoo Holdings is set to go public in Malaysia after a scaled-down offering that's expected to raise RM395 million (S$119.4 million). Cuckoo International (Mal) will begin trading on June 24, two months after postponing its initial public offering due to market volatility. The final amount raised may vary as the company is waiting for approval from the bourse to reduce its public shareholding spread to 20 per cent from the current 25 per cent. Its revised offer price of RM1.08 per share, from RM1.29 previously, will value the company at RM1.55 billion. The company's debut will be closely watched for clues on demand for consumption stocks given the tepid retail subscription rate for Cuckoo. Chief executive officer Hoe Kian Choon is confident that its prospects and sizeable market share in the local home-appliance rental segment will draw investors. 'A lot of our investors were happy' that the offering was put off to ride out the volatility sparked by the US tariff announcement in April, Hoe said in an interview. 'None of our cornerstone investors left.' While market uncertainty remains high, the situation is 'more stable now,' allowing the company to revive its listing plans, he said. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up Hoe, who founded the local company in 2014 as a distributor of Cuckoo products, has grown the business on the strength of its water purifier rental segment. Cuckoo Malaysia also co-creates some new products with other brands for the domestic market. The company's promising outlook prompted its Korean supplier to take up a majority stake in the Malaysian firm. Hoe said Cuckoo Malaysia has secured nearly a fifth of the local appliance rental market and opportunities to cross-sell products among its one million active-subscriber base would help the company achieve double-digit revenue growth over the next few years. Cuckoo Malaysia's profit after tax for the first nine months of 2024 jumped 75 per cent from the previous corresponding period to RM104 million. Revenue rose 13 per cent. 'Malaysia's market is growing not only in number of households but also in household debt,' Hoe said. 'Malaysians are looking for the best way to actually maximize their value for money. Rental will be one of the ways for them to enjoy a standard of living.' Korean rival Coway's wholly-owned local unit currently has market leadership in the rental space. Hoe, a former Coway executive, aims to catch up with other Cuckoo offerings including mattresses, massage chairs and air purifiers. Consumer brands that are centred on mass-market affordability have done well in Malaysia. Two of the country's biggest IPOs in the past year were retail chains that catered to customers looking to stretch the dollar – mini-mart operator 99 Speed Mart Retail Holdings and dollar-store chain Eco-Shop Marketing. Hoe said Cuckoo's business fundamentals remain sound given little exposure to external shocks. While it is vulnerable to a stronger US currency – the company buys stock from its Korean parent in dollars – strong recurring income from its rental segment helps ease the pressure. Cuckoo will use proceeds from the IPO to open new concept stores that will allow cash-and-carry purchases and expand its business in Singapore. BLOOMBERG
