KUALA LUMPUR (Jan 28): PETRONAS Chemicals Group Bhd (KL:PCHEM) is expected to extend its run of weak quarterly results with a wider net loss in its fourth quarterly review (4QFY2025), according to CGS International.
In a research note on Wednesday, the firm said weaker product prices, foreign exchange losses and suboptimal plant utilisation rates is expected to weigh on PETRONAS Chemicals’ earnings.
“Reiterate ‘reduce’ as we think PETRONAS Chemicals will deliver weak 4QFY2025F results that may fall below our and the LSEG consensus’ estimates by a wide margin,” said the research house, as the company’s 4Q results are set to release on Feb 23, 2026.
CGS International said the company could potentially see a core net loss larger than the RM287 million recorded in 3QFY2025.
Factors contributing to it are declining prices for key products such as polymers and monoethylene glycol (MEG) during the quarter, while urea prices eased from the stronger levels recorded in the third quarter.
CGS International added that foreign exchange movements are likely to escalate the earnings weakness. The US dollar weakened about 3.5% against the ringgit between end-September and end-December 2025, which could translate into foreign exchange losses of around RM200 million for the quarter, compared with RM74 million in the previous quarter.
PETRONAS Chemicals could also see operational issues at its Pengerang Petrochemical Complex as the naphtha cracker ran at an estimated 60% to 70% utilisation, which is below the optimal range needed to minimise losses, limiting signs of meaningful recovery in its bottom line.
CGS International expects FY2026 to remain challenging for PETRONAS Chemicals, with polymer and monoethylene glycol prices under pressure from persistent global oversupply.
Scheduled maintenance at the second Kertih ethane cracker in 2QFY2026 and extended turnarounds at Pengerang later in the year could further weigh on earnings if plant utilisation stays below optimal levels.
CGS International’s FY2025 loss after tax and minority interests forecast of RM1.36 billion could imply a small core net profit of RM29 million for 4QFY2025. The research house reiterated its “reduce” rating and has an unchanged target price of RM2.94 on PETRONAS Chemicals.
At the time of writing on Wednesday, shares of PETRONAS Chemicals were down four sen or 1.18% to RM3.35. The group had a market capitalisation of RM26.8 billion.