PETALING JAYA: Petronas Chemicals Group Bhd (PCG) posted a net loss of RM754 million for the fourth quarter ended Dec 31, 2025 (Q4 FY25), a 245.28% year-on-year decline from a net profit of RM519 million in Q4 FY24.
In a filing to Bursa Malaysia, PCG said revenue for the quarter declined 11.5% year-on-year to RM6.60 billion from RM7.45 billion posted in Q4 FY24.
For FY25, PCG posted a net loss of RM2.1 billion, a 282.30% decline year-on-year from a net profit of RM1.17 billion in FY24.
The decrease was primarily due to lower earnings before interest, tax, depreciation and amortisation (Ebitda), asset impairments at Perstorp and lower finance income from timing adjustments to trade payable payments, as well as an unrealised foreign exchange loss from the revaluation of a shareholder loan to Pengerang Petrochemical Company Sdn Bhd.
Revenue for FY25 stood at RM27.48 billion from RM30.67 billion previously, supported by steady sales volumes across both commodity and specialities portfolios.
However, softer product prices, narrowing spreads and continued market oversupply, particularly in the olefins and derivatives (O&D) and specialities markets, drove Ebitda down 46% year‑on‑year to RM1.9 billion.
PCG declared a second interim dividend of 4 sen per ordinary share, returning RM320 million to shareholders and reinforcing its continued commitment to delivering value even in a challenging operating environment.
In a separate statement, Petronas Chemical said the chemicals sector faced a challenging year in 2025, marked by persistent overcapacity, subdued global demand and rising competitive pressure across Asia‑Pacific as new capacities came online.
Prolonged oversupply from Northeast Asia and the Middle East, coupled with shifting geoeconomic policies, trade tensions and tariff‑related disruptions continued to weigh on market access, pricing and margins.
The group achieved a plant utilisation rate of 88% for the year, despite heavy planned maintenance work, including turnaround activities at PC Fertiliser Sabah.
The group also faced production interruptions due to an unscheduled utilities outage at the Kertih Integrated Petrochemical Complex in January and feedstock disruptions at PC Fertiliser Kedah following the Putra Heights incident in April 2025.
Further, the group said it demonstrated resilience across its diversified portfolio, supported by the strong performance of the fertiliser and methanol (F&M) segment.
This was driven by stable urea demand in India, Australia and Latin America, as well as higher methanol sales through its strategic sourcing initiatives.
The O&D segment recorded softer performance due to lower average product prices, driven by weak downstream demand and ongoing geoeconomic tensions, as well as lower sales volumes.
Segment results were further impacted by the strengthening of the ringgit against the US dollar and higher unrealised foreign exchange loss from the revaluation of payables, lower finance income due to timing adjustments to trade payable payments, as well as higher depreciation and finance costs at Pengerang Petrochemical.
The specialty chemicals portfolio saw weaker performance amid a volatile market conditions, persistent pricing pressure and widening regional disparities.
Oversupply from Asia‑Pacific maintained competitive intensity and depressed prices, with the impact amplified by trade tensions and tariff uncertainties.
Performance was additionally affected by lower sales volumes, mainly in the intermediates business unit, higher operating expenses, asset impairments and unfavourable net foreign exchange movements.
Petronas Chemicals managing director and CEO Mazuin Ismail said the group remained steadfast in safeguarding its fundamentals and strengthening operational resilience.
He said throughout the year, the group navigated a complex mix of external and internal challenges that required continuous recalibration to sustain performance and delivery.
“With unplanned disruptions occurring alongside the scheduled programme, we undertook a full‑year operational review and made the decision to defer the major portion of our turnaround activities to this year to safeguard operational and business continuity.
“Despite the challenging environment, we maintained stable operations, meeting our operational targets with both O&D and F&M segments operating above 85% plant utilisation. In speciality chemicals, we advanced our shift toward higher‑value markets,“ he said in the statement.
Mazuin said the acquisition of OQ Chemicals Nederland BV in December 2024 enabled the group’s entry into synthetic ester solutions for transformer fluid applications, with its first customer delivery in July 2025.
The group maintained tight cost controls, prioritised operational reliability and safeguarded liquidity, delivering RM574 million in value creation and cost optimisation through disciplined cost management, performance interventions and commercial optimisation.
“We also continued to strengthen our sustainability agenda by improving energy efficiency, optimising processes and reducing flaring across our operations. During the year, we expanded the use of bundled Renewable Energy Certificates and advanced technical studies in other decarbonisation pathways aligned with asset readiness and long‑term value creation,” Mazuin said.
