KUALA LUMPUR (Nov 21): PETRONAS Chemicals Group Bhd (KL:PCHEM) was still in the red in the recently-ended quarter though the losses were sharply narrower as the ringgit strengthened.
Net loss for the three months ended Sept 30, 2025 (3QFY2025) was RM289 million, compared with RM789 million in the same quarter last year, the company said in an exchange filing.
Revenue for the quarter declined 15% year-on-year to RM6.79 billion from lower US dollar receipts and product prices.
No dividend was declared for the quarter under review.
PETRONAS Chemicals' outlook is unlikely to change in the near term, the company said in its results commentary with ongoing oversupply and weak demand continuing to put pressure on margins.
Market sentiment for its mainstay olefins and derivatives products will remain “bearish amid oversupply, weak demand, and unfavourable margins in downstream segments”, the company cautioned.
Its specialties segment is also hampered by sluggish construction and automotive markets.
Nevertheless, PETRONAS Chemicals sees potential upside in the fertiliser and methanol segment from China’s export restrictions, which may boost urea prices ahead of India’s planting season, as well as tighter supply from energy prioritisation during winter.
In 3QFY2025, the company's olefins and derivatives division saw plant utilisation fall to 90% from 95% a year earlier. Revenue dropped 24% to RM3.2 billion, while negative earnings before interest, taxes, depreciation and amortisation (Ebitda) narrowed 20% to RM110 million.
The fertilisers and methanol segment posted a plant utilisation rate of 89%, down from 90% last year. Revenue edged up 4% to RM2.2 billion, but Ebitda slipped 5% to RM577 million due to weaker product spreads.
The specialties segment saw revenue decline 17% to RM1.3 billion, with Ebitda falling 38% to RM149 million.
For the cumulative nine months ended Sept 30, 2025 (9MFY2025), the company swung to a net loss of RM1.39 billion, from a net profit of RM656 million in 9MFY2024. Revenue fell 10% to RM20.9 billion from RM23.2 billion.
“Our performance this quarter reflects the tangible benefits of operational discipline with overall improved plant performance, while we undertake the planned turnaround activity at our fertiliser plant in Sipitang, Sabah. The shutdown was safely executed and completed as scheduled,” PETRONAS Chemicals managing director and CEO Mazuin Ismail said in a statement.
Mazuin said the creditors reliability test (CRT) at the Pengerang Integrated Complex initiated at the end of June has been paused given continued weak market conditions. The test will be re-initiated when market conditions recover.
“In the meantime, our plants remain up and running in the most optimum mode to suit the best margin and serve our customers’ needs. We are confident that by staying flexible and value-focused, we will be well positioned to capture new opportunities,” he said.
PETRONAS Chemicals’ share price fell 14 sen, or 4.2%, to RM3.20 ahead of the announcement on Friday, valuing the group at RM25.6 billion. Year to date, the counter has dropped more than 38%.