- Plant Utilisation of 94%
- Revenue of RM7.7 billion
- EBITDA of RM892 million
Kuala Lumpur, 20 May 2025 – PETRONAS Chemicals Group Berhad (PCG or the Group), today announced its financial results for the first quarter (1Q 2025) in the financial year ending 31 December 2025, against the backdrop of an increasingly challenging chemicals market.
The Group sustained its operational performance with plant utilisation rate of 94% in 1Q 2025, comparable against 4Q 2024. Revenue grew 3% quarter-on-quarter to RM7.7 billion driven by higher average prices of urea, methanol, and polyethylene as well as improved sales performance in the specialties segment. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose 26% to RM892 million, supported by better spreads for urea, methanol, methyl tert-butyl ether (MTBE) and olefin derivatives, coupled with reduced operational costs. However, Profit After Tax (PAT) declined to RM18 million from RM539 million in the previous quarter, largely due to unfavourable foreign exchange movement.
During the quarter, the Olefins & Derivatives (O&D) segment overcame utilities supply disruption that impacted several plants in Kertih, as well as reduced production at the Pengerang Petrochemicals Company Sdn. Bhd. (PPC) due to feedstock unavailability. These external issues, combined with the limited uplift in product prices amid industry oversupply, resulted in the O&D segment recording a 4% decrease in quarterly revenue to RM3.5 billion. The segment reported Loss Before Interest, Tax, Depreciation and Amortisation (LBITDA) of RM43 million, primarily attributed to lower contributions from PPC, mainly due to lower plant utilisation rate and unrealised foreign exchange loss on revaluation of payables.
The Group’s Fertilisers & Methanol (F&M) segment recorded an overall improvement in sales and earnings supported by stronger average product prices despite a slight decline in sales volume. Tight global supply and robust seasonal demand led to increase in prices of approximately 13% and 5% for urea and methanol, respectively. The F&M segment recorded a higher quarterly revenue of RM2.5 billion while EBITDA rose 22% quarter-on-quarter to RM892 million, driven by improved product spreads.
The specialties segment reported improved sales across all product categories, with notable growth in Oxo products, following market restocking activities. Despite lower average selling prices, the segment's 1Q revenue rose by 19% to RM1.6 billion against the previous quarter on the back of higher sales volumes. EBITDA improved to RM52 million, supported by stronger contribution margins and increased sales volume.
Key highlights 1Q 2025 vs 4Q 2024
- The average Group Plant utilisation rate was recorded at 94% (4Q 2024: 95%) uplifted by strong performance in the F&M segment.
- Revenue improved 3% to RM7.7 billion (4Q 2024: RM7.5 billion) on higher average product prices and higher sales volume from the specialties segment.
- Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) rose 26% to RM892 million (4Q 2024: RM710 million) on improved product spreads and lower operational costs.
- Profit after Tax (PAT) declined to RM18 million (4Q 2024: PAT RM539 million) due to unrealised foreign exchange impact from the revaluation of shareholders loan to PPC and loans in the specialties segment.
Commenting on the 1Q 2025 performance, Mazuin Ismail, Managing Director/Chief Executive Officer of PCG, said “Our resilience in navigating the challenging market landscape underscores the strength of our diversified portfolio. The improvement in EBITDA reflects our ongoing efforts on operational excellence with commendable plant utilisation rate achieved by our commodities business, despite setbacks in January 2025 that temporarily impacted operations at several plants in Kertih.”
On implications of US tariffs to PCG, Mazuin said, “We are closely monitoring these developments and assessing broader implications on the overall market dynamics.”
“To maintain our resilience and competitiveness amid the current industry downturn, we remain focused on driving excellence. Our unwavering commitment to safe and efficient operations across all facilities continues as we are currently undertaking repair and maintenance activities at several O&D and F&M plants. At the same time, we are strengthening customer relationships to better meet their evolving needs, while upholding strict financial discipline and prudent capital spending.” he concluded.
