PETRONAS Chemicals managing director and CEO Mazuin Ismail
KUALA LUMPUR: Petronas Chemicals Group Bhd
(PetChem) narrowed its net losses in the third quarter ended Sept 30, 2025 (3QFY25), with overall earnings improvement delivered by stronger operational performance, continued cost discipline and lower foreign exchange impact amidst the challenging chemicals market.
In the quarter under review, the group's net loss was reduced to RM289mil as compared to a net loss of RM789mil in the year-ago quarter, attributed to lower unrealised foreign exchange loss on revaluation of shareholders loan to a joint operation entity. Loss per share shrank to four sen from 10 sen previously.
The group reported lower revenue of RM6.79bil, a 15% contraction year-on-year (y-o-y), due to lower sales volume and product prices as well as the strengthening of the ringgit against the US dollar.
During the quarter, the group plant utilisation rate improved to 90% from 77% in the preceding quarter (2Q), due to better plant performances despite the planned turnaround activity undertaken at PC Fertiliser Sabah.
“Our performance this quarter reflects the tangible benefits of operational discipline with overall improved plant performance, while we undertake the planned turnaround activity at our fertiliser plant in Sipitang, Sabah. The shutdown was safely executed and completed as scheduled," said managing director and CEO Mazuin Ismail in a statement.
However, he noted that the group is expecting the operating environment to remain challenging in the near term, as the industry continues to contend with ongoing oversupply and subdued demand growth, leading to continued pressure on margins.
"PetChem remains cautious on the Olefins and Derivatives segment, with most products facing oversupply amid seasonal slowdowns.
"The Fertiliser and Methanol segment has potential upside, as export restrictions from China may boost urea prices ahead of India’s planting season while methanol prices may find support due to energy prioritisation in winter.
"The company maintains a conservative outlook on the Specialties segment, as end markets such as construction and automotive are facing headwinds due to soft demand," he said.
For the nine-month period to Sept 30, 2025, PetChem posted a net loss of RM1.39bil as compared to a net profit of RM656mil in the previous-year period. Revenue dropped to RM20.88bil from RM23.21bil in 9MFY24.
