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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
Barnama
20-05-2025
- Business
- Barnama
PCG Demonstrates Resilience On Strength Of Diversified Portfolio
KUALA LUMPUR, May 20 (Bernama) -- PETRONAS Chemicals Group Berhad (PCG or the Group), today announced its financial results for the first quarter (1Q 2025) in the financial year ending 31 December 2025, against the backdrop of an increasingly challenging chemicals market. The Group sustained its operational performance with plant utilisation rate of 94% in 1Q 2025, comparable against 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 RM539 million in the previous quarter, largely due to unfavourable foreign exchange movement.
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.
