PETRONAS Chemicals Group Bhd ( (PECGF) ) has released its Q2 earnings. Here is a breakdown of the information PETRONAS Chemicals Group Bhd presented to its investors.
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PETRONAS Chemicals Group Berhad (PCG) is a leading integrated chemicals producer in Malaysia, operating in the petrochemical industry with a diverse portfolio that includes olefins, derivatives, fertilizers, methanol, and specialty chemicals. The company’s latest quarterly earnings report reveals a challenging period with a notable decline in financial performance. For the second quarter ended June 30, 2025, PCG reported a significant drop in revenue to RM6.4 billion from RM7.7 billion in the same quarter last year, primarily due to lower sales volume, reduced product prices, and the strengthening of the Malaysian Ringgit against the US Dollar. The company recorded a loss after tax of RM1.0 billion, a stark contrast to the RM809 million profit in the previous year, driven by lower earnings before interest, taxes, depreciation, and amortization (EBITDA), impairment losses, and foreign exchange losses. Key highlights include a decrease in plant utilization rates, particularly in the Olefins and Derivatives segment, which faced operational challenges and lower product spreads. Despite these setbacks, the Fertilizers and Methanol segment showed resilience with increased revenue due to higher product prices. Looking ahead, PCG remains focused on maintaining operational excellence and navigating market challenges, with expectations of stable prices in the fertilizers and methanol segments, while cautiously managing demand uncertainties in the specialties sector.