For the first half of FY2025, the Group revenue declined 7% year-on-year to RM14.1 billion largely on foreign currency translation following the strengthening of the Malaysian Ringgit against the US Dollar and lower average product prices. At RM1.3 billion, Group EBITDA declined 43% on lower product spreads, particularly in the Olefins & Derivatives (O&D) segment, and unrealised foreign exchange loss on revaluation of payables at PPCSB. The Group recorded LAT of RM1.0 billion on adjustment of timing of payment for trade payables at PPCSB, impairment of assets at Perstorp, unrealised foreign exchange loss on revaluation of shareholders loan to PPCSB, as well as higher depreciation and finance costs at PPCSB.
The company has declared an interim dividend of 3 sen per ordinary share, returning a total of RM240 million to shareholders, reflecting the company’s continued commitment to delivering shareholder returns.
Strategy reviewTo navigate an increasingly challenging industry landscape, the Group is intensifying its portfolio review, cost optimisation initiatives and organisational rightsizing. The Group is also reviewing its investment in joint ventures and associates.
In the Olefins & Derivatives and Fertilizer & Methanol segments, the initiatives focus on improving sales netbacks and enhancing logistics efficiency, as well as aligning turnaround and maintenance efforts to maximise production. For the Specialties segment, the Group continues to optimise sites, supply chains, and logistics, to support growth in four key areas: resins & coatings, personal care, engineering fluids, and advanced polymer solutions.
These efforts aim to strengthen PCG’s operational efficiency, cost competitiveness, and deliver long-term value.
Management commentariesMazuin Ismail, Managing Director/Chief Executive Officer of PCG commented, “2Q 2025 presented several operational challenges both internal and external, that impacted our plants’ performance. Notably, internally, we proactively shut down PC Ethylene for vessel wall rectification without significantly affecting our commitments to customers. We also made the decision to proactively scale back operations at PC Aromatics due to unfavourable economics.
On the external front, our plant at PC Fertiliser Kedah was affected by the feedstock supply disruption following the gas pipeline incident at Putra Heights. The disruption has been resolved, and operation has been fully restored in June 2025.”
Addressing growth, Mazuin said, “The commodities market remains challenging amid persistent oversupply and ongoing trade as well as geopolitical tensions. Nevertheless, demand continues to grow, particularly in Asia, driven by population and urban growth. Our Pengerang facility, built to support this growth, is currently operating to meet the Creditors Reliability Test by year-end.”
Mazuin also highlighted that the Melamine plant in Gurun, Kedah is now ready for start-up. This facility will utilise urea from PC Fertiliser Kedah as feedstock, in line with PCG’s strategic growth plan to expand further into derivatives. He also reported that the Isononanol (INA) plant in Pengerang, Johor has successfully achieved Commercial Operation Date on 12 August 2025. INA, an oxo-alcohol, used in the production of plasticisers, will complement Perstorp’s product offerings to customers in the Asia Pacific plasticiser industry.
Commenting on strategy, Mazuin said “In light of the increasingly dynamic market environment, we are undertaking strategic portfolio review across our entire value chain. Anticipating further increase in operating costs and substantial capital requirements, we recorded an impairment loss on assets at Perstorp.”
Although we faced market and operational challenges during the quarter, our financial position remains robust. Furthermore, our value creation and cost optimisation initiatives have led to more than RM200 million improvement in EBITDA on a year-to-date basis. This has enabled us to declare interim dividend of RM240 million, which underscores our ongoing commitment to our shareholders in delivering sustainable long-term value.
Looking ahead, while market conditions remain challenging, we are confident that our strong fundamentals combined with the initiatives currently underway will continue to strengthen our resilience,” he concluded.
About PETRONAS Chemicals Group Berhad PETRONAS Chemicals Group Berhad (PCG) is the leading integrated chemicals producer in Malaysia and one of the largest in Southeast Asia. It operates a number of world-class production sites in Malaysia, Asia-Pacific, Europe and North America. With a total combined production capacity of 16.8
million metric tons per annum (mtpa), it is involved primarily in manufacturing, marketing and selling a diversified range of chemical products, including olefins, polymers, fertilisers, methanol, other basic chemicals, derivative products and specialty chemicals.
Listed on Bursa Malaysia with more than three decades of experience in the chemicals industry, PCG is established as part of the PETRONAS Group to maximise value from Malaysia’s natural gas resources.
PCG is committed to ensuring that its business practices are in line with globally recognised standards for Economic, Environment, Social & Governance (EESG) practices. It is currently listed in the FTSE4Good Bursa Malaysia (F4GBM) Index and the Dow Jones Best-in-Class.
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PETRONAS Chemicals Group Berhad (PCG) SOURCE: PETRONAS Chemicals Group Berhad (PCG)
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