PETRONAS Chemicals Group Berhad (PCG or the Group) today announced its financial results for the first quarter of financial year 2026 (1Q 2026), delivering strong plant utilisation rate of 97% and improved earnings against a backdrop of heightened market volatility. The quarter saw escalation of the West Asia conflict which tightened supply, pushing energy and product prices higher.
Portfolio Performance Commodities During the quarter, the Fertilisers & Methanol (F&M) segment delivered strong operational performance at plant utilisation rate of 103%. Average product prices rose by approximately 18% for urea and 13% for methanol, supported by tight global supply and strong seasonal demand. Segment revenue increased to RM2.6 billion, while EBITDA rose 49% to RM1.1 billion, driven by improved product spreads.
The Group’s Olefins & Derivatives (O&D) segment recorded a plant utilisation rate of 87%, mainly due to planned maintenance activities at the MTBE plant. Segment revenue increased 5% quarter‑on‑quarter to RM2.9 billion, supported by higher average product prices and improved sales volumes. Loss Before Interest, Tax, Depreciation and Amortisation (LBITDA) significantly improved to RM91 million from RM600 million in 4Q 2025, driven mainly by higher average product spreads and lower plant operating costs.
Specialty Chemicals The portfolio recorded higher sales volume, particularly in Intermediates, supported by a rebound in demand following customer restocking activities. Quarter‑on‑quarter revenue increased 17% to RM1.4 billion, driven mainly by improved sales volumes. EBITDA improved to RM198 million, reflecting higher revenue, contributions from the sale of emission rights and value realised from ongoing cost optimisation initiatives.
Mazuin Ismail, PCG Managing Director/Chief Executive Officer said:
“The West Asia conflict reshaped our operating landscape with remarkable speed, creating a more volatile and complex environment. It also underscored the vulnerability of the industry supply chains, given the region’s strategic importance in global feedstock and chemicals supply.
“Our integrated model secures a reliable, domestically sourced feedstock for our gas-based operations in Malaysia through an extensive pipeline network, helping to mitigate the impact of disruptions in global supply.
“The improvement in EBITDA reflects the underlying strength and resilience of our business model, together with our sustained emphasis on operational and commercial excellence, supported by disciplined cost management.
“We continue to undertake portfolio review and rationalisation exercise that ensures our investments, value chain and product offerings are robust and in line with evolving market requirements. During the quarter the Group has divested investments in a subsidiary and an associate resulting in total gain on disposals of RM63 million.
“Our commitment to safe and reliable operations remains unwavering, particularly as we undertake scheduled turnaround activities at several O&D plants in Kertih and the fertiliser plant in Bintulu in the second quarter."
Outlook The operating environment is expected to remain volatile, shaped by ongoing geopolitical developments, supply chain disruptions and softer downstream demand.
In the O&D segment, prices are expected to moderate on affordability constraints affecting demand from downstream manufacturers. Fertilisers will continue to be supported by global food security priorities and export restrictions in key producing regions, while methanol supply is set to tighten on scheduled regional plant turnarounds. In the Specialties segment, the Group remains cautious given the subdued construction and automotive end markets, while demand for consumer goods is showing modest growth.
Against this backdrop, PCG remains focused on operational and commercial excellence as well as strict financial discipline to sustain resilience and competitiveness through the cycle.
About PETRONAS Chemicals Group Berhad PETRONAS Chemicals Group Berhad (PCG) is Malaysia's leading integrated chemicals producer and one of the largest in Southeast Asia by capacity. The Group operates a network of world-class production sites across Malaysia, Asia-Pacific, Europe and North America with a total combined production capacity 16.8
million metric tons per annum (mtpa).
PCG 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 and backed by more than four 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 Economic, Environment, Social & Governance (EESG) standards, as reflected in its long-standing inclusion in the FTSE4Good Bursa Malaysia Index.
Further details on PCG can be found at
www.petronas.com/pcg For photos, please click here:
https://drive.google.com/drive/folders/1XqJ0o_ddplDTsbwKhTRugehub56RQe-t?usp=sharing SOURCE: PETRONAS Chemicals Group Bhd (PCG) FOR MORE INFORMATION, PLEASE CONTACT:Name: Gary Khoo Tse-Yau
Corporate Communications Department
PETRONAS CHEMICALS GROUP BERHAD (PCG)
Tel : (6) 012 932 9280
Email : khoo.tseyau@petronas.com
--BERNAMA