FY2025 Results Reflect Challenging Market; PCG Prioritises Operational and Commercial Excellence while Maintaining Cost Discipline

• Plant Utilisation of 88%
• Revenue of RM27.5 billion
• EBITDA RM1.9 billion
• Total Dividend of RM560 million 

KUALA LUMPUR, Feb 23 (Bernama) --  PETRONAS Chemicals Group Berhad (PCG), today announced its financial results for the fourth quarter (4Q 2025) and audited financial year ended 31 December 2025 (FY2025).  

Revenue for FY2025 stood at RM27.5 billion, supported by steady sales volumes across both commodity and specialties portfolios. However, softer product prices, narrowing spreads and continued market oversupply, particularly in the Olefins & Derivatives (O&D) and specialties markets, drove Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) down 46% year‑on‑year to RM1.9 billion.  

The Group recorded a Loss After Tax (LAT) of RM2.1 billion, primarily reflecting lower EBITDA, asset impairments at Perstorp and lower finance income from timing adjustments to trade payable payments, as well as unrealised foreign exchange loss from revaluation of shareholder loan to Pengerang Petrochemical Company Sdn. Bhd. (PPCSB).

PCG has declared a second interim dividend of 4 sen per ordinary share, returning RM320 million to shareholders and reinforcing its continued commitment to delivering value even in a challenging operating environment.

Portfolio Highlights for FY2025 

The chemicals sector faced a challenging year in 2025, marked by persistent overcapacity, subdued global demand and rising competitive pressure across Asia‑Pacific as new capacities came online. Prolonged oversupply from Northeast Asia and the Middle East, coupled with shifting geoeconomic policies, trade tensions and tariff‑related disruptions, continued to weigh on market access, pricing and margins.

The Group achieved a plant utilisation rate of 88% for the year, despite heavy planned maintenance works including turnaround activities at PC Fertiliser Sabah. The Group also faced production interruptions arising from an unscheduled utilities outage at the Kertih Integrated Petrochemical Complex (KIPC) in January and feedstock disruption at PC Fertiliser Kedah following the Putra Heights incident in April 2025.

PCG demonstrated resilience across its diversified portfolio, supported by the strong performance of the Fertiliser & Methanol (F&M) segment. This was driven by stable urea demand in India, Australia and Latin America, as well as higher methanol sales through its strategic sourcing initiatives.

The O&D segment recorded softer performance due to lower average product prices on the back of weak downstream demand and ongoing geoeconomic tensions as well as lower sales volumes. Segment results were further impacted by the strengthening of the Ringgit Malaysia against the US dollar and higher unrealised foreign exchange loss from the revaluation of payables, lower finance income due to timing adjustments to trade payable payments, as well as higher depreciation and finance costs at PPCSB.

The Specialty Chemicals portfolio also saw weaker performance amid volatile market conditions, persistent pricing pressure and widening regional disparities. Oversupply from Asia‑Pacific maintained competitive intensity and depressed prices, with the impact amplified by trade tensions and tariff uncertainties. Performance was additionally affected by lower sales volumes mainly within the Intermediates business unit, higher operating expenses, asset impairments and unfavourable net foreign exchange movements. 

Key highlights for 4Q 2025 

Comparative financial summary:

LATANCI: Loss After Tax and Non-Controlling Interest
PATANCI: Profit After Tax and Non-Controlling Interest 

• Average Group Plant utilisation rate was recorded at 96% contributing to an increase in production and sales volumes for commodity chemicals. Revenue was lower by 3% at RM6.6 billion, weighed down by lower average selling prices and the negative foreign exchange impact

• Earnings Before Interest, Taxation, Depreciation and Amortisation (EBITDA) declined 77% to RM115 million, mainly due to higher unrealised foreign exchange loss from the revaluation of PPCSB payables and increased repair and maintenance costs

• Loss after Tax (LAT) stood at RM730 million driven by lower EBITDA and higher unfavourable foreign exchange losses arising from the revaluation of the shareholder loan to PPCSB

• A second interim dividend of 4 sen per share was declared for the financial year ended 31 December 2025. The RM320 million dividend, payable on 18 March 2026, brings total FY2025 dividends to RM560 million, reflecting the company’s continued commitment to delivering shareholder return 

Mazuin Ismail, PCG Managing Director/Chief Executive Officer said:  

“PCG remained steadfast in safeguarding our fundamentals and strengthening operational resilience. Throughout the year, the Group navigated a complex mix of external and internal challenges that required continuous recalibration to sustain performance and delivery. With unplanned disruptions occurring alongside the scheduled programme, we undertook a full‑year operational review and made the decision to defer the major portion of our turnaround activities to this year to safeguard operational and business continuity. Despite the challenging environment, we maintained stable operations, meeting our operational targets with both O&D and F&M segments operating above 85% plant utilisation.

In Specialty Chemicals, we advanced our shift toward higher‑value markets. The acquisition of OQ Chemicals Nederland B.V. in December 2024 enabled our entry into synthetic ester solutions for transformer fluid applications, with our first customer delivery in July 2025. 

The Group maintained tight cost controls, prioritised operational reliability and safeguarded liquidity, delivering RM574 million in value creation and cost optimisation through disciplined cost management, performance interventions and commercial optimisation.  

We also continued to strengthen our sustainability agenda by improving energy efficiency, optimising processes and reducing flaring across our operations. During the year, we expanded the use of bundled Renewable Energy Certificates and advanced technical studies in other decarbonisation pathways aligned with asset readiness and long‑term value creation.”

Outlook 

The operating landscape in 2026 is expected to remain challenging as the global chemicals sector continues to face economic uncertainty, oil price volatility and evolving market conditions, alongside heightened geoeconomic and trade tensions. The Group expects the O&D market to remain under pressure due to new capacity additions in China and subdued demand. In contrast, robust agricultural demand in India and Australia continues to support fertiliser consumption, while methanol supply is expected to remain tight amid scheduled turnarounds in Southeast Asia. The Group also maintains a cautious outlook for the Specialties segment, given ongoing softness in construction and automotive end markets, with only modest growth observed in consumer‑related sectors.  

PCG will continue to enhance the resilience of its portfolio by leveraging strengths in asset optimisation, cost competitiveness and operational efficiency. Its core businesses will remain a priority, anchored by safe and reliable operations, disciplined capital allocation and sustained efficiency to protect margins and cash flow through the cycle.  

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.  

SOURCE: PETRONAS

FOR MORE INFORMATION, PLEASE CONTACT: 
Name: Yogeswari Thangavelu
Corporate Communications Department 
PETRONAS CHEMICALS GROUP BERHAD (PCG)
Tel: (6) 017 2000919
Email: yogeswari.thangavel@petronas.com 

--BERNAMA