Last updated on August 23, 2025
KUALA LUMPUR: Petronas Chemicals Group Bhd reported weaker earnings in the second quarter of 2025, hit by both internal disruptions and external market pressures.
Heightened geopolitical tensions in the Middle East and new tariff measures weighed on crude oil prices and dampened the US dollar, further challenging the company’s performance.
For the quarter ended June 30, 2025, the group posted a net loss of RM1.08 billion, reversing from a net profit of RM777 million in the same period last year. The decline was largely due to a 56% drop in earnings before interest, tax, depreciation and amortisation (Ebitda) to RM396 million.
Losses were exacerbated by remeasurement losses from adjustments in trade payable payment schedules, asset impairments at Perstorp, and higher unrealised foreign exchange losses from revaluing a shareholder loan to a joint operation. Increased depreciation and finance costs from the same entity also added to the drag.
Revenue fell nearly 17% to RM6.4 billion from RM7.7 billion a year earlier, reflecting lower sales volumes and average product prices.
The group declared a first interim dividend of three sen per share, amounting to RM240 million, payable on Sept 10, 2025.
For the first half of 2025, revenue dropped 7% to RM14.1 billion, mainly due to foreign currency translation losses from a stronger ringgit against the US dollar and lower average product prices. Net losses for the period stood at RM1 billion, driven by similar factors seen in Q2.
Managing director and CEO Mazuin Ismail said the results reflect a combination of operational challenges and external headwinds that affected plant performance. He noted that while the commodities market remains pressured by persistent oversupply and geopolitical as well as trade uncertainties, demand—particularly in Asia—continues to grow, supported by population and urban expansion.
“Our Pengerang facility, built to support this growth, is currently operating to meet the creditors’ reliability test by year-end,” Mazuin said, adding that the company is conducting a strategic portfolio review across its value chain to adapt to market shifts.
“Despite current challenges, we remain confident that our strong fundamentals, along with ongoing initiatives, will reinforce our resilience,” he said.
