Media Release

• Revenue of RM6.4 billion
• EBITDA RM395 million
• Dividend Payout of RM240 million

Kuala Lumpur, 13 August – PETRONAS Chemicals Group Berhad (PCG or the Group), announced its financial results for the second quarter (2Q 2025) and an interim dividend amounting to RM240 million for the financial year ending 31 December 2025. In 2Q 2025, PCG recorded a Loss after Tax (LAT) and a decline in Revenue, having navigated both internal and external disruptions to its operations amid heightened geopolitical tensions in the Middle East and tariff announcements, which affected crude oil prices and weakened the US Dollar. 

Group Revenue declined 16% quarter-on-quarter to RM6.4 billion, due to lower sales volumes and average product prices. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) declined 56% quarter-on-quarter to RM395 million, mainly due to lower product spreads for urea and methanol, as well as lower contribution from Pengerang Petrochemical Company Sdn Bhd (PPCSB) following unrealised foreign exchange loss. The Group recorded LAT of RM1.0 billion, due to lower EBITDA, impairment of assets at Perstorp, unrealised foreign exchange loss from revaluation of shareholders loan to PPCSB and finance expenses arising from adjustments of timing of payment for trade payables at PPCSB.

Key highlights 2Q 2025 vs 1Q 2025

• The average Group Plant Utilisation rate was recorded at 77% (1Q 2025: 94%) due to feedstock supply disruption and several repair and maintenance activities undertaken during the quarter.
• Revenue declined 16% to RM6.4 billion (1Q 2025: RM7.7 billion) on lower sales volume and average product prices.
• Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) declined 56% to RM395 million (1Q 2025: RM892 million) on lower product spreads and unrealised foreign exchange loss from revaluation of payables at PPCSB.
• Loss after Tax (LAT) recorded at RM1.0 billion (1Q 2025: Profit After Tax (PAT) RM18 million) due to unfavourable foreign exchange impact on the revaluation of shareholders loan to PPCSB and impairment of assets at Perstorp.
• An interim dividend of 3 sen per share, was declared for the financial year ending 31 December 2025. The dividend amounting to RM240 million, is payable in September 2025.

2Q 2025 comparative financial summary:

For the first half of FY2025, the Group revenue declined 7% year-on-year to RM14.1 billion largely on foreign currency translation following the strengthening of the Malaysian Ringgit against the US Dollar and lower average product prices. At RM1.3 billion, Group EBITDA declined 43% on lower product spreads, particularly in the Olefins & Derivatives (O&D) segment, and unrealised foreign exchange loss on revaluation of payables at PPCSB. The Group recorded LAT of RM1.0 billion on adjustment of timing of payment for trade payables at PPCSB, impairment of assets at Perstorp, unrealised foreign exchange loss on revaluation of shareholders loan to PPCSB, as well as higher depreciation and finance costs at PPCSB.

The company has declared an interim dividend of 3 sen per ordinary share, returning a total of RM240 million to shareholders, reflecting the company’s continued commitment to delivering shareholder returns.

Strategy review

To navigate an increasingly challenging industry landscape, the Group is intensifying its portfolio review, cost optimisation initiatives and organisational rightsizing. The Group is also reviewing its investment in joint ventures and associates.

In the Olefins & Derivatives and Fertilizer & Methanol segments, the initiatives focus on improving sales netbacks and enhancing logistics efficiency, as well as aligning turnaround and maintenance efforts to maximise production. For the Specialties segment, the Group continues to optimise sites, supply chains, and logistics, to support growth in four key areas: resins & coatings, personal care, engineering fluids, and advanced polymer solutions.

These efforts aim to strengthen PCG’s operational efficiency, cost competitiveness, and deliver long-term value.

Management commentaries

Mazuin Ismail, Managing Director/Chief Executive Officer of PCG commented, “2Q 2025 presented several operational challenges both internal and external, that impacted our plants’ performance. Notably, internally, we proactively shut down PC Ethylene for vessel wall rectification without significantly affecting our commitments to customers. We also made the decision to proactively scale back operations at PC Aromatics due to unfavourable economics. On the external front, our plant at PC Fertiliser Kedah was affected by the feedstock supply disruption following the gas pipeline incident at Putra Heights. The disruption has been resolved, and operation has been fully restored in June 2025.”

Addressing growth, Mazuin said, “The commodities market remains challenging amid persistent oversupply and ongoing trade as well as geopolitical tensions. Nevertheless, demand continues to grow, particularly in Asia, driven by population and urban growth. Our Pengerang facility, built to support this growth, is currently operating to meet the Creditors Reliability Test by year-end.”

Mazuin also highlighted that the Melamine plant in Gurun, Kedah is now ready for start-up. This facility will utilise urea from PC Fertiliser Kedah as feedstock, in line with PCG’s strategic growth plan to expand further into derivatives. He also reported that the Isononanol (INA) plant in Pengerang, Johor has successfully achieved Commercial Operation Date on 12 August 2025. INA, an oxo-alcohol, used in the production of plasticisers, will complement Perstorp’s product offerings to customers in the Asia Pacific plasticiser industry.

Commenting on strategy, Mazuin said “In light of the increasingly dynamic market environment, we are undertaking strategic portfolio review across our entire value chain. Anticipating further increase in operating costs and substantial capital requirements, we recorded an impairment loss on assets at Perstorp.”

Although we faced market and operational challenges during the quarter, our financial position remains robust. Furthermore, our value creation and cost optimisation initiatives have led to more than RM200 million improvement in EBITDA on a year-to-date basis. This has enabled us to declare interim dividend of RM240 million, which underscores our ongoing commitment to our shareholders in delivering sustainable long-term value.

Looking ahead, while market conditions remain challenging, we are confident that our strong fundamentals combined with the initiatives currently underway will continue to strengthen our resilience,” he concluded.