KUALA LUMPUR: Petronas Chemicals Group Bhd
(PetChem) posted a strong second quarter ended June 30, 2026 (2QFY26), amid robust demand and higher product spreads due to the prolonged West Asia conflict, bolstering profitability in what was otherwise an operationally challenging quarter, said managing director and CEO Mazuin Ismail.
During the quarter, the group undertook major planned turnaround activities at several facilities in KIPC and the urea plant in Bintulu.
"We upheld our commitment to safe and reliable operations by successfully completing the turnaround activities without any major HSE incidents," said Mazuin in his review of the group's quarterly performance.
PetChem recorded a net profit of RM414mil, as compared to a net loss of RM1.08bil in the year-ago quarter, turning in an earnings per share of six sen as compared to a loss of 14 sen per share.
Quarterly revenue jumped to RM7.9bil from RM6.44bil in the previous comparative quarter.
This brought first-half net profit to RM815mil as compared to a net loss of RM1.1bil in the year-ago period, while revenue was improved at RM14.92bil against RM14.09bil over the same period.
The board of directors declared an interim dividend of six sen per share for those listed in the record of depositors on Sept 7, 2026, to be paid on Sept 15, 2026.
According to Mazuin, the group captured market upside by prioritising domestic and regional customers, maximising spot sales opportunities, as well as leveraging strategic sourcing and trading activities to strengthen earnings.
The group's value creation and cost optimisation initiatives contributed RM324mil to earnings before interest, depreciation and amortisaiton year-to-date.
Moving forward, the operating environement in 2026 is expected to remain challenging amid the geopolitical uncertainties, evolving trade policies and supply-demand imbalances, said Mazuin.
The olefins and derivatives segment is expected to remain stable, with pricing primarily influenced by feedstock cost movements and producer s operating rates amid continued regional oversupply and competitive market conditions.
The fertilisers market remains bullish, supported by global food security requirements, tight supply conditions and sustained import demand from key markets such as India and Australia.
Meanwhile, the price of methanol is expected to remain stable on the back of balanced supply-demand fundamentals despite potential fluctuations in regional demand.
The group said it remains cautious on the specialities segment given subdued construction and automotive end markets, while consumer goods demand shows modest growth.
