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-Plant Utilization Rate at 94%
-Revenue of RM7.7 billion
-EBITDA of RM892 million
PETRONAS Chemicals Group Berhad (PCG or the Group) today announced its financial results for the first quarter (1Q 2025) of the financial year ended 31 December 2025, despite increasingly challenging chemical market conditions.
The Group maintained strong operating performance with a plant utilisation rate of 94% in 1Q 2025, almost in line with 4Q 2024. Revenue increased by 3% quarter-on-quarter to RM7.7 billion, driven by higher average prices for urea, methanol and polyethylene and better sales performance in the specialty chemicals segment. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) jumped 26% to RM892 million, supported by better product mix for urea, methanol, methyl tert-butyl ether (MTBE) and olefin derivatives, as well as lower operating costs. However, Profit After Tax (PAT) decreased to RM18 million compared to RM539 million in the previous quarter, largely due to unfavourable foreign exchange rate movements.
During the quarter, the Olefins & Derivatives (O&D) segment successfully weathered utility supply disruptions affecting several plants in Kertih, as well as reduced production at Pengerang Petrochemicals Company Sdn. Bhd. (PPC) due to feedstock shortages. The combination of these external issues, with limited product price increases amid an industry oversupply, resulted in the O&D division’s quarterly revenue declining 4% to RM3.5 billion. The division recorded a Loss Before Interest, Tax, Depreciation and Amortization (LBITDA) of RM43 million, mainly due to a lower contribution from PPC due to reduced plant utilization rates and unrealized foreign exchange losses from the revaluation of creditors.
The Group’s Fertilizer & Methanol (F&M) segment recorded an overall increase in sales and earnings, supported by stronger average product prices despite a slight decline in sales volumes. Limited global supply and strong seasonal demand led to price increases of around 13% for urea and 5% for methanol. The F&M division recorded higher quarterly revenue of RM2.5 billion, while EBITDA increased 22% quarter-on-quarter to RM892 million on the back of improved product mix.
The specialty chemicals segment recorded increased sales across all product categories, with a significant increase in Oxo products due to market restocking activities. Despite lower average selling prices, the division’s revenue increased 19% to RM1.6 billion compared to the previous quarter, supported by higher sales volume. EBITDA also increased to RM52 million, driven by stronger contribution margins and increased sales volume.
Key highlights of 1Q 2025 compared to 4Q 2024:
-The Group's average plant utilisation rate was recorded at 94% (4Q 2024: 95%) driven by strong performance in the F&M segment.
-Revenue increased 3% to RM7.7 billion (4Q 2024: RM7.5 billion) driven by higher average product prices and sales volumes in the specialty chemicals segment.
-EBITDA increased 26% to RM892 million (4Q 2024: RM710 million) due to better product deployment and lower operating costs.
-PAT decreased to RM18 million (4Q 2024: RM539 million) due to unrealized foreign exchange impact from revaluation of shareholder loans to PPC and specialty chemicals segment loans
Commenting on the 1Q 2025 performance, Mazuin Ismail, PCG Managing Director/Chief Executive Officer said, “Our resilience in weathering challenging market conditions demonstrates the strength of our diversified portfolio. The EBITDA improvement reflects our continued efforts to achieve operational excellence with good plant utilisation rates at our commodity business, despite disruptions in January 2025 that temporarily affected operations at several plants in Kertih.”
Regarding the implications of US tariffs on PCG, he said, “We are monitoring this situation closely and assessing the broader impact on overall market movements.”
“To maintain our resilience and competitiveness in the current industry downturn, we remain focused on driving excellence. Our commitment to the safety and operational efficiency of all our facilities will continue with the implementation of repair and maintenance works at several O&D and F&M plants that are currently underway. At the same time, we are strengthening customer relationships to meet their growing needs, while maintaining strict financial discipline and prudent capital expenditure,” he concluded.
Note: This story has not been edited by The Polymerupdate Editorial team and is auto-generated from a syndicated feed.
