Why did Petronas Chemicals post a RM1.08 billion net loss in 2Q 2025?

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Petronas Chemicals Group Bhd Recorded a RM1.08 Billion Net Loss in 2Q 2025

Petronas Chemicals Group Bhd (PCG) reported a net loss of RM1.08 billion for the second quarter ending June 30, 2025. This financial outcome was primarily driven by a decrease in earnings before interest, tax, depreciation, and amortisation (Ebitda), coupled with significant asset impairments at Perstorp Holding AB. Additional contributing factors included unrealised foreign exchange losses from the revaluation of a shareholders' loan to Pengerang Petrochemical Company Sdn Bhd (PPCSB) and finance expenses associated with adjustments to trade payable payment timing at PPCSB.
Decline in Revenue and Sales Volumes

The company's revenue experienced a notable decline of 17 per cent, falling to RM6.44 billion from RM7.73 billion in the corresponding quarter of the previous year. This reduction in revenue was largely attributed to lower sales volumes. The strengthening of the Malaysian ringgit against the US dollar also played a significant role, as did a general decrease in product prices across the market.
Reduced Plant Utilisation Rates

PCG recorded a lower plant utilisation rate of 77 per cent during the second quarter of 2025, a decrease from the 89 per cent achieved in the same period of 2024. This reduced utilisation stemmed from a disruption in feedstock supply at PC Fertiliser Kedah and increased plant repair and maintenance activities undertaken during the quarter. Consequently, these factors led to a lower overall production volume.
Operational Adjustments and External Disruptions

The operational challenges faced by PCG during the quarter included proactive measures taken by the company. PC Ethylene was temporarily shut down for vessel wall rectification, a move described as not significantly impacting customer commitments. Furthermore, operations at PC Aromatics were scaled back due to unfavourable economic conditions. Externally, the gas pipeline incident at Putra Heights resulted in a feedstock supply disruption affecting the plant at PC Fertiliser Kedah, though operations were fully restored by June 2025.

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Why did Petronas Chemicals post a RM1.08 billion net loss in 2Q 2025?

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