PETALING JAYA: Amid a challenging chemicals industry last year, Petronas Chemicals Group Bhd
(PetChem) has recorded its first annual loss since its 2010 listing.
Persistent overcapacity, subdued global demand and rising competitive pressure across Asia-Pacific had also been key factors.
In addition, continuous oversupply from northeast Asia and the Middle East, shifting geoeconomic policies, trade tensions and tariff‑related disruptions continued to weigh heavily on market access, pricing and margins.
PetChem reported a loss of RM754mil for the fourth quarter ended Dec 31, 2025, compared with RM519mil gain for the same quarter a year ago.
The group said the loss was on the back of lower earnings before interest, taxes, depreciation, and amortisation and higher unfavourable foreign-exchange losses arising from the revaluation of the shareholder loan to Pengerang Petrochemical Co Sdn Bhd.
Its revenue for the quarter under review was also lower at RM6.6mil compared with RM7.46mil for the same quarter in 2024, weighed down by lower average selling prices and the negative foreign exchange impact.
For its financial year ended Dec 31, 2025 (FY25), the group’s loss amounted to RM2.14bil, while revenue stood at RM27.5bil.
PetChem declared a second interim dividend of four sen per share, returning RM320mil to shareholders which would be payable on March 18, bringing total FY25 dividends to RM560mil.
Managing director and chief executive officer Mazuin Ismail said despite the challenging environment, the group had managed to maintain stable operations and met operational targets in olefins and derivatives ( O&D) and fertiliser and methanol segments which operated above 85% plant utilisation.
“In specialty chemicals, we advanced our shift toward higher-value markets. The acquisition of OQ Chemicals Nederland BV in December 2024 enabled our entry into synthetic ester solutions for transformer fluid applications, with our first customer delivery in July 2025,” he said.
He added the group navigated a 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 decided to defer the major portion of our turnaround activities this year to safeguard operational and business continuity,” he noted.
Over 2025, the group also expanded the use of bundled renewable energy certificates and advanced technical studies in other decarbonisation pathways.
Meanwhile, the group expected 2026 to remain challenging as economic oil price volatility, evolving market conditions, heightened geoeconomic and trade tensions continued.
“We expect the O&D market to remain under pressure due to new capacity additions in China and subdued demand.
“In contrast, robust agricultural demand in India and Australia continues to support fertiliser consumption, while methanol supply is expected to remain tight amid scheduled turnarounds in South-East Asia,” the group said.
It would also maintain a cautious outlook for the specialist segment, given ongoing softness in construction and automotive end markets.
“PetChem will continue to enhance the resilience of its portfolio by leveraging strengths in asset optimisation, cost competitiveness and operational efficiency.
“Its core businesses will remain a priority, anchored by safe and reliable operations, disciplined capital allocation and sustained efficiency to protect margins and cash flow through the cycle.”
