KUALA LUMPUR: Petronas Chemicals Group Bhd
continues to operate in a volatile environment, shaped by ongoing geopolitical developments, supply chain disruptions and softer downstream demand, said managing director and CEO Mazuin Ismail.
In the first quarter ended March 31, 2026, the group's net profit surged to RM401mil from a net loss of RM18mil in the year-ago quarter on the back of higher product spreads, increased contribution from the specialities segment and lower plant operation costs.
The improved performance was partially offset by lower contribution from a joint operation entity.
Quarterly revenue was 8.37% lower year-on-year to RM7.02bil due to the strengthening of the ringgit against the US dollar, and lower revenue contribution from a joint operation entity and the specialities segment. This was partially offset by higher contribution from the fertilisers and methanol segment.
"The West Asia conflict reshaped our operating landscape with remarkable speed, creating a more volatile and complex environment. It also underscored the vulnerability of the industry supply chain, given the region’s strategic importance in global feedstock and chemicals supply," said Mazuin.
He said the group continues to undertake a portfolio review and rationalisation exercise, which ensures investments, value chain and product offerings are robust and in line with evolving market requirements.
"Our commitment to safe and reliable operations remains unwavering, particularly as we undertake scheduled turnaround activities at several O&D plants in Kertih and fertiliser plant in Bintulu in the second quarter," he said in comments accompanying the group's latest results announcement.
In his outlook, Mazuin said prices in the the O&D segment are expected to moderate on affordability constraints affecting demand from downstream manufacturers.
Meanwhile, fertilisers will continue to be supported by global food security priorities and export restrictions in key producing regions, while methanol supply is set to tighten on scheduled regional plant turnarounds.
In the specialties segment, the group remains cautious given the subdued construction and automotive end markets, while demand for consumer goods is showing modest growth.
