KUALA LUMPUR: Petronas Chemicals Group Bhd
(PCG), which slipped into a RM2.14bil net loss in the financial year ended Dec 31, 2025 (FY25), expects operating conditions to remain tough in the year ahead.
"The operating landscape in 2026 is expected to remain challenging as the global chemicals sector continues to face economic uncertainty, oil price volatility and evolving market conditions, alongside heightened geoeconomic and trade tensions,” PCG said in a statement.
The group expects the olefins & derivatives (O&D) market to remain under pressure due to new capacity additions in China and subdued demand.
In contrast, PCG said robust agricultural demand in India and Australia continues to support fertiliser consumption, while methanol supply is expected to remain tight amid scheduled turnarounds in Southeast Asia.
“The group also maintains a cautious outlook for the specialties segment, given ongoing softness in construction and automotive end markets, with only modest growth observed in consumer ‑related sectors,” it said.
In the fourth quarter ended Dec 31, PCG slipped into a net loss of RM754mil, or a loss per share of 9.00 sen, compared with a net profit of RM519mil, or earnings per share of 6.00 sen, a year earlier.
Quarterly revenue fell 11.5% to RM6.6bil from RM7.46bil previously.
Revenue for FY25 stood at RM27.5bil, supported by steady sales volumes across both commodity and specialties portfolios.
However, PCG said softer product prices, narrowing spreads and continued market oversupply, particularly in the O&D and specialties market s, drove earnings before interest, tax, depreciation and amortisation (EBITDA) down 46 % year‑on‑year to RM1.9bil.
For FY25, the group posted a net loss of RM2.14bil against a net profit of RM1.17bil, mainly due to lower earnings before interest, tax, depreciation and amortisation, asset impairments at Perstorp, lower finance income arising from timing adjustments to trade payable payments, as well as unrealised foreign exchange losses from the revaluation of a shareholder loan to Pengerang Petrochemical Company Sdn Bhd.
PCG has declared a second interim dividend of 4 sen per ordinary share, returning RM320mil to shareholders.
The RM320mil dividend, payable on March 18, brings total FY25 dividends to RM560mil, reflecting the company’s continued commitment to delivering shareholder return.
Managing director and chief executive officer Mazuin Ismail said PCG remained steadfast in safeguarding its fundamentals and strengthening operational resilience.
He said throughout the year, the group navigated a complex mix of external and internal challenges that required continuous recalibration to sustain performance and delivery.
“With unplanned disruptions occurring alongside the scheduled programme, we undertook a full ‑year operational review and made the decision to defer the major portion of our turnaround activities to this year to safeguard operational and business continuity.
“Despite the challenging environment, we maintained stable operations, meeting our operational targets with both O&D and F&M segments operating above 85% plant utilisation,” he said.
