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," said PetChem managing director and CEO Mazuin Ismail in a statement.
He added that the group recorded an impairment loss on assets at speciality chemicals firm Perstorp Holding AB as it anticipated further increase in operating costs and substantial capital requirements.
"Looking ahead, while market conditions remain challenging, we are confident that our strong fundamentals combined with the initiative currently underway will continue to strengthen our resilience," he said.
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, taxes, 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, impairment 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.
