KUALA LUMPUR (Aug 19): PETRONAS Chemicals Group Bhd (KL:PCHEM) swung to the black in the second quarter, thanks to a surge in revenue and better product spreads.
Net profit for the three months ended June 30, 2026 (2QFY2026) was RM414 million compared to a net loss of RM1.08 billion in the same quarter last year when the petrochemical company booked foreign exchange losses and wrote down the value of assets at its Swedish specialty unit Perstorp.
Revenue for the quarter surged 23% year-on-year to RM7.93 billion as higher average product prices amid the prolonged West Asia conflict offset lower sales volume, a bourse filing showed. The plant utilisation rate fell four percentage points to 73% due to higher statutory turnaround and maintenance activities.
PETRONAS Chemicals is now preparing for another major planned turnaround at its Methanol Plant 2 in Labuan as well as ramping up Pengerang operations in the third quarter, said chief executive Mazuin Ismail.
Statutory turnaround activity in the oil and gas industry typically involves shutting down some refineries' operations for maintenance or upgrades. Turnarounds are typically planned extensively, due to the cost involved and potential revenue loss.
Its fertilisers-and-methanol segment was the standout with profit after tax nearly tripling to RM887 million. Revenue grew 62% year-on-year to RM3.7 billion as product prices surged amid tightening global supply.
Olefins and derivatives saw narrower loss of RM426 million as higher product prices cushioned lower sales with its plants operating just half of their capacity due to major planned turnaround activities at several facilities in the Kertih Integrated Petrochemical Complex.
The specialties business, meanwhile, turned around with RM63 million profit mainly due to improved margin and favourable net foreign exchange.
Overall, PETRONAS Chemicals is now in the black for the second consecutive quarter. For the first half, net profit came in at RM815 million against a net loss of RM1.1 billion in the same six-month period in 2025. Revenue rose 6% year-on-year to RM14.9 billion.
PETRONAS Chemicals also raised its interim dividend per share to six sen from three sen a year earlier, payable on Sept 15.