By DayakDaily Team
KUCHING, Nov 21: PETRONAS Chemicals Group Berhad (PCG) cut its net loss to RM291 million for the third quarter ended Sept 30, 2025, supported by stronger operational performance, improved product spreads and reduced foreign exchange impact.
In announcing its 3Q 2025 results today, the company said revenue rose to RM6.8 billion, a 5 per cent increase from the RM6.4 billion recorded in the previous quarter, driven mainly by higher sales volumes.
EBITDA strengthened to RM497 million, up 26 per cent from RM395 million in 2Q 2025, as urea and ammonia spreads improved and unrealised foreign exchange losses from the revaluation of PPCSB payables declined.
PCG also significantly narrowed its loss after tax to RM291 million, compared with RM1 billion in the previous quarter.
The improvement was attributed to lower unfavourable forex impact on the revaluation of shareholders’ loan to Pengerang Petrochemical Company Sdn Bhd (PPCSB), as well as the absence of asset impairments at Perstorp and remeasurement losses that had weighed heavily on its 2Q 2025 performance. Plant utilisation rose to 90 per cent, up from 77 per cent, reflecting stronger plant reliability despite the planned turnaround at PC Fertiliser Sabah.
PCG managing director and chief executive officer Mazuin Ismail said the quarter’s results demonstrated the tangible benefits of the Group’s operational discipline and enhanced plant performance, including the safe and timely completion of the scheduled turnaround at its fertiliser plant in Sipitang, Sabah.
“The Group continues to focus on operational efficiency, cost optimisation initiatives and actively seeking opportunities for value creation. This disciplined approach has resulted in an improvement of more than RM400 million in EBITDA on a year-to-date basis,” he said in a media release.
Mazuin noted that PCG continues to innovate and broaden its product portfolio, especially within the Specialties business, where demand persists for more durable and advanced coating solutions.
“Through our specialty chemicals segment we have further enhanced our offerings with the introduction of our Neptem ™ range of emulsifiers for waterborne alkyds, aimed at reducing volatile organic compounds in paints and coatings. This brings the total number of new products developed so far this year to 15,” he said.
He also said that while PCG initiated the Creditors Reliability Test (CRT) at the Pengerang Integrated Complex in late June, the company decided to pause the exercise due to continued weak market conditions.
“In the meantime, our plants remain up and running at the most optimum mode to suit the best margin and serve our customers’ needs. We are confident that by staying flexible and value-focused, we will be well-positioned to capture new opportunities,” he concluded.
Looking ahead, PCG expects the operating landscape to remain challenging as global chemical markets grapple with oversupply and subdued demand growth, putting pressure on margins.
The company remains cautious on the Olefins and Derivatives segment, which continues to face seasonal slowdowns and persistent oversupply. However, it sees potential upside in the Fertiliser and Methanol segment, where China’s export restrictions may support urea prices ahead of India’s planting season, and methanol prices could stabilise due to winter energy prioritisation. PCG maintains a conservative outlook on its Specialties segment, with end markets such as construction and automotive still struggling with soft demand. — DayakDaily
