KUALA LUMPUR (April 22): PETRONAS Chemicals Group Bhd (KL:PCHEM) said it will prioritise domestic customers over export markets in 2026, as the petrochemicals producer moves to safeguard local supply amid volatility from the West Asia conflict and another year of challenging operating conditions.
The group said its strategy for the coming year is centred on discipline across safety, operations and capital deployment, while pursuing selective initiatives to strengthen portfolio resilience through core business optimisation, disciplined specialty chemicals expansion and targeted investments, as it navigates fresh volatility in feedstock costs and supply chains arising from the geopolitical developments in West Asia.
“Our priority for 2026 is to maintain vigilance, reinforce discipline and safeguard the strength of our operations, while continuing to build the foundations for sustainable growth,” managing director and chief executive officer Mazuin Ismail said in a statement released after the group’s 28th annual general meeting on Wednesday.
“PETRONAS Chemicals remains committed to prioritising domestic demand over exports to ensure the continued availability of high-quality products in the local market. Customers can rely on PETRONAS Chemicals for stable supply and consistent product quality,” he added.
The latest guidance comes after PETRONAS Chemicals had already warned in February that operating conditions in 2026 would remain challenging, after posting a net loss of RM754 million for the fourth quarter ended Dec 31, 2025 (4QFY2025), its fourth consecutive quarterly loss.
For the full financial year, the group posted a net loss of RM2.14 billion, reversing from a net profit of RM1.18 billion in FY2024, while revenue slipped to RM27.5 billion.
PETRONAS Chemicals, with a combined production capacity of 16.8 million tonnes per annum, manufactures and sells a diversified range of chemical products including olefins, polymers, fertilisers, methanol, basic and derivative chemicals, as well as specialty chemicals.
On Bursa Malaysia, PETRONAS Chemicals has emerged as one of the biggest gainers in the recent rally in oil and gas-linked counters, as supply disruption fears stemming from the war in Iran drove investors into perceived beneficiaries of higher energy prices, including upstream producers, service contractors, tank operators, refiners and petrochemical companies.
The stock has rebounded sharply after hovering near record lows before the conflict, when the group was grappling with losses caused by the global petrochemical glut.
The counter closed up 10 sen or 1.95% to RM5.22 on Wednesday, valuing the group at RM41.76 billion. The stock has gained nearly 50% year to date.