PETRONAS Chemicals Group (PCG) has reported a challenging 2025, with revenue of RM27.5 billion but a sharp 46% drop in EBITDA to RM1.9 billion, driven by softer product prices, narrowing spreads, and market oversupply. 

 

The Group recorded a Loss After Tax (LAT) of RM2.1 billion, citing asset impairments at Perstorp, lower finance income, and unrealised foreign exchange losses from its shareholder loan to Pengerang Petrochemical Company Sdn. Bhd. (PPCSB).

 

Despite the setback, PCG declared a second interim dividend of 4 sen per share, returning RM320 million to shareholders, reinforcing its commitment to shareholder value.

 

The chemicals sector faced persistent overcapacity, subdued global demand, and rising competition across Asia-Pacific. Oversupply from Northeast Asia and the Middle East, trade tensions, and shifting geoeconomic policies weighed on pricing and margins.

 

PCG achieved 88% plant utilisation for the year, despite major planned maintenance, unplanned utilities outages at the Kertih Integrated Petrochemical Complex, and feedstock disruptions at PC Fertiliser Kedah.

 

The Fertiliser & Methanol (F&M) segment performed well, supported by stable urea demand in India, Australia, and Latin America, and increased methanol sales. In contrast, the Olefins & Derivatives (O&D) and Specialty Chemicals segments faced weaker performance, pressured by lower prices, regional oversupply, trade tensions, and foreign exchange fluctuations.

 

 

For 4Q 2025, revenue fell 3% to RM6.6 billion, with EBITDA plunging 77% to RM115 million and LAT at RM730 million, largely due to unrealised foreign exchange losses and higher maintenance costs.

 

PCG’s average plant utilisation rose to 96%, supporting production and sales volumes for commodity chemicals. The declared second interim dividend of 4 sen per share, payable on 18 March 2026, brings total FY2025 dividends to RM560 million.

 

CEO Mazuin Ismail said: “PCG remained steadfast in safeguarding our fundamentals and strengthening operational resilience. 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."

 

He added: "In Specialty Chemicals, we advanced our shift toward higher‑value markets. The acquisition of OQ Chemicals Nederland B.V. in December 2024 enabled our entry into synthetic ester solutions for transformer fluid applications, with our 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.”

 

PCG warns that 2026 will remain challenging due to economic uncertainty, oil price volatility, and heightened trade tensions. While O&D markets may face continued pressure, F&M demand is expected to stay robust in India and Australia, and methanol supply could tighten during regional turnarounds. Specialty Chemicals will face ongoing softness in construction and automotive, with modest growth in consumer-related sectors.