Petronas Chemicals Group Bhd. (PCG) reported a net revenue of 6.4 billion Malaysian ringgit ($1.5 billion) for the second quarter of 2025, reflecting a decline attributed to lower sales volumes and average product prices, as per Chemweek.
The company’s EBITDA plummeted by 56% quarter over quarter to 395 million ringgit, primarily due to reduced product spreads for urea and methanol, alongside a diminished contribution from Pengerang Petrochemical Company Sdn Bhd (PPCSB), which faced unrealized foreign exchange losses.In a stark contrast to the previous year’s performance, PCG recorded a net loss of 1 billion ringgit, compared with a profit of 777 million ringgit during the same period last year.
This downturn was exacerbated by lower EBITDA, asset impairment at its affiliate Perstorp Group (Malmo, Sweden) and finance expenses linked to trade payable adjustments at PPCSB.The average plant utilization rate fell to 77%, down from 94% in the first quarter, largely due to disruptions in feedstock supply and necessary repair and maintenance activities conducted during the quarter.To address the increasingly challenging industry landscape, PCG is ramping up its portfolio review, cost optimization initiatives, and organizational rightsizing. The company is also reassessing its investments in joint ventures and associates.In its olefins and derivatives; and fertilizer and ethanol segments, PCG is focusing on enhancing sales netbacks and logistics efficiency while aligning turnaround and maintenance efforts to maximize production output. For the specialties segment, efforts are underway to optimize sites, supply chains and logistics, targeting growth in four key areas: resins and coatings, personal care, engineering fluids, and advanced polymer solutions.“Second quarter presented several operational challenges both internal and external that impacted our plants’ performance. Notably, we proactively shut down PC Ethylene for vessel wall rectification without significantly affecting our commitments to customers and scaled back operations at PC Aromatics due to unfavorable economics.
Externally, our plant at PC Fertiliser Kedah faced feedstock supply disruptions, following a gas pipeline incident at Putra Heights, which has since been resolved, and operations have been fully restored as of June 2025,” said Mazuin Ismail, managing director and CEO of PCG.Addressing the growth outlook, Mazuin noted, “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 further highlighted that the melamine plant in Gurun, Malaysia, is now ready for startup, utilizing urea from PC Fertiliser Kedah as feedstock, aligning with PCG’s strategic growth plan to expand further into derivatives.
Additionally, the isononanol (INA) plant in Pengerang, has achieved its commercial operation, an oxo-alcohol used in producing plasticizers, will enhance Perstorp’s product offerings to customers in the Asia-Pacific plasticizer industry.In conclusion, Mazuin remarked, “In light of the increasingly dynamic market environment, we are undertaking a strategic portfolio review across our entire value chain. Anticipating further increases in operating costs and substantial capital requirements, we recorded an impairment loss on assets at Perstorp.”
Source: Reuters