PETALING JAYA: Petronas Chemicals Group Bhd (PCG) returned to the black in the second quarter ended June 30, 2026 (Q2’26), posting a net profit attributable to shareholders of RM414 million against a net loss of RM1.08 billion a year earlier, as stronger product spreads and improved demand lifted earnings despite major planned turnaround activities.
According to a filing with Bursa Malaysia, its revenue rose 22.8% to RM7.90 billion in Q2’26 from RM6.44 billion in the corresponding quarter last year. The group’s overall plant utilisation rate, however, slipped to 73% from 77% due to higher statutory turnaround and plant maintenance activities at several facilities in the Kertih Integrated Petrochemicals Complex and the urea plant in Bintulu.
For the first half of 2026, PCG recorded a net profit of RM815 million, reversing from a net loss of RM1.10 billion in the corresponding period last year, while revenue increased 5.9% to RM14.92 billion from RM14.09 billion.
The group said first-half revenue was lifted by improved average product prices, although this was partially offset by the strengthening of the ringgit against the US dollar. Earnings before interest, tax, depreciation and amortisation (EBITDA) surged 94% to RM2.49 billion, mainly due to better average product spreads and higher contributions from its joint operation entity and Specialties segment.
The stronger EBITDA helped PCG return to a profit after tax of RM872 million for the six-month period, compared with a loss after tax of RM1.03 billion previously, when results were mainly affected by unrealised foreign exchange losses and impairment of assets at Perstorp.
During Q2’26, PCG’s Fertilisers and Methanol segment was the strongest contributor, with revenue rising 62% to RM3.66 billion, driven primarily by improved average product prices. Segment profit after tax jumped to RM887 million from RM307 million, supported by stronger product spreads.
Meanwhile, the Olefins and Derivatives segment recorded a loss after tax of RM426 million, narrower than the RM671 million loss posted a year earlier, while the Specialties segment returned to a profit after tax of RM63 million from a RM302 million loss in the corresponding quarter, helped by improved contribution margins and favourable net foreign exchange impact.
PCG said its Q2’26 revenue was also 13% higher quarter-on-quarter, while EBITDA increased by RM143 million to RM1.32 billion. Profit after tax rose to RM445 million from RM427 million in Q1’26, despite an RM88 million impairment on projects in progress.
The group declared an interim dividend of six sen per share, amounting to RM480 million, for the financial year ending December 31, 2026. The dividend is payable on September 15, 2026, to shareholders registered by the close of business on September 7.
Looking ahead, PCG said the operating environment is expected to remain challenging amid geopolitical uncertainties, evolving trade policies and supply-demand imbalances. It remains focused on operational discipline and business resilience while preparing for another major planned turnaround at Petronas Chemicals Methanol Sdn Bhd’s Plant 2 and continuing the ramp-up of Pengerang Petrochemical Company Sdn Bhd in the third quarter.
