PETRONAS Chemicals Group Bhd Swings to RM754 Million Quarterly Loss, Signals Tough 2026 Ahead

KUALA LUMPUR — PETRONAS Chemicals Group Bhd (PCG) reported its fourth consecutive quarterly loss, posting a net loss of RM754 million for the fourth quarter ended Dec 31, 2025, compared with a net profit of RM519 million in the same period a year earlier.

The weaker performance was primarily attributed to lower product prices, margin compression, and continued pressure from global oversupply, particularly from new petrochemical capacities in China.

Quarterly revenue fell 12% year-on-year to RM6.6 billion from RM7.46 billion previously, reflecting softer market conditions across several key segments.

Segment Performance

The group’s Olefins & Derivatives (O&D) segment was the main drag on earnings, recording an EBITDA loss of RM600 million despite improved plant utilisation rates. Lower average product prices and narrowing spreads significantly impacted margins.

Meanwhile, the Specialties segment also slipped into negative territory, posting an EBITDA loss of RM31 million amid heightened competition and weaker demand.

In contrast, the Fertilisers and Methanol division remained resilient, delivering an EBITDA of RM730 million, supported by stronger sales volumes and firmer prices during the quarter.

Full-Year Results

For the financial year 2025, PCG recorded a net loss of RM2.14 billion, a sharp reversal from the RM1.18 billion net profit posted in FY2024. Full-year revenue declined to RM27.5 billion.

Outlook for 2026

Management cautioned that market conditions are expected to remain challenging in 2026 due to persistent global oversupply and uncertain demand recovery. The company indicated it will focus on operational efficiency, cost optimisation, and disciplined capital management to navigate the difficult environment.

Despite the losses, PCG declared a second interim dividend of 4 sen per share, payable on March 18, reflecting its commitment to delivering shareholder returns amid cyclical headwinds.

The report was originally published by The Edge Malaysia.