PETRONAS CHEMICALS RECORDS FY2025 NET LOSS OF RM2.14 BLN

KUALA LUMPUR, Feb 23 (Bernama) -- Petronas Chemicals Group Bhd posted a net loss of RM2.14 billion in the financial year ended Dec 31, 2025 (FY2025), compared to a net profit of RM1.17 billion in the previous year. 

It said the net loss for FY2025 was in line with lower earnings before interest, taxes, depreciation, and amortisation (EBITDA), lower finance income arising from the adjustment of the timing of trade payments, and higher unrealised foreign exchange losses.

Petronas Chemical’s EBITDA fell by 46 per cent to RM1.89 billion, mainly due to weaker product spreads and higher unrealised foreign exchange loss on revaluation of payables at a joint operation entity.

In a Bursa Malaysia filing today, the company said its revenue for the year also declined by 10 per cent to RM27.48 billion from RM30.67 billion due to the strengthening of the ringgit against the US dollar, lower revenue contribution from the joint operation entity and specialities segment, as well as lower product prices.

Petronas Chemicals also declared a second interim single-tier dividend of four sen per share for the financial year ended Dec 31, 2025. The RM320 million dividend, payable on March 18 2026, brings total FY2025 dividends to RM560 million.

For the fourth quarter ended Dec 31, 2025 (4Q FY2025), Petronas Chemicals recorded a net loss of RM754.0 million from a net profit of RM519.0 million a year earlier, due to lower EBITDA and higher unrealised foreign exchange loss on revaluation of shareholders’ loan to a joint operation entity.

EBITDA reduced by 84 per cent to RM115 million, mainly contributed by unrealised foreign exchange loss on revaluation of payables at a joint operation entity.

Revenue in 4Q FY2025 fell by 12 per cent to RM6.60 billion from RM7.45 billion year-on-year, due to lower revenue contribution from the joint operation entity,  strengthening of the ringgit and lower revenue contribution from the specialities segment, partially offset by higher sales volume from fertilisers and the methanol segment.

Petronas Chemicals said 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.

It said that 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. 

Meanwhile, Petronas Chemicals said its plant utilisation rate was 88 per cent for the year, despite heavy planned maintenance works, including turnaround activities at Petronas Chemicals Fertiliser Sabah.

It also faced production interruptions due to an unscheduled utilities outage at the Kertih Integrated Petrochemical Complex in January and feedstock disruptions at Petronas Chemicals Fertiliser Kedah following the Putra Heights incident in April 2025. 

However, Petronas Chemicals said the group demonstrated resilience across its diversified portfolio, supported by the strong performance of the fertiliser and methanol segment, driven by stable urea demand in India, Australia and Latin America, as well as higher methanol sales through its strategic sourcing initiatives.

“The olefins and derivatives 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, while the speciality chemicals portfolio also saw weaker performance amid volatile market conditions, persistent pricing pressure and widening regional disparities,” it said.

Petronas Chemicals managing director/chief executive officer Mazuin Ismail said 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 decided 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 olefins and derivatives as well as fertilisers and the methanol segments operating above 85 per cent plant utilisation,” he said.

Moving forward, Petronas Chemicals expects the olefins and derivatives 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. 

“Petronas Chemicals will continue to enhance the resilience of its portfolio by leveraging strengths in asset optimisation, cost competitiveness and operational efficiency,” it added.

-- BERNAMA