KUALA LUMPUR – Petronas Chemicals Group Bhd (PCG) posted a sharp turnaround with a net profit of RM401 million for the first quarter ended March 31, 2026, compared with a net loss of RM18 million in the same period last year.
Revenue, however, slipped eight per cent to RM7.01 billion from RM7.65 billion, weighed down by a stronger ringgit against the US dollar and lower contributions from joint ventures and the specialties segment.
In its filing to Bursa Malaysia, PCG reported a higher plant utilisation rate of 97 per cent versus 94 per cent previously, driven by stronger operational performance that lifted production and sales volumes.
Managing Director and Chief Executive Officer Mazuin Ismail said the fast‑shifting Middle East conflict has reshaped the operating landscape, creating a more volatile and complex environment.
“It also underscores the vulnerabilities of the industry’s supply chain, given the strategic importance of the region in global feedstock and chemical supply. Our integrated model secures reliable domestic feedstock for our gas‑based operations in Malaysia through an extensive pipeline network, helping to cushion the impact of global supply disruptions,” she said.
During the quarter, PCG disposed of investments in subsidiaries and associates, generating a disposal gain of RM63 million. Looking ahead, the company cautioned that operating conditions are expected to remain uncertain, influenced by ongoing geopolitical developments, supply chain disruptions and slower downstream demand.
For its olefins and derivatives segment, prices are expected to moderate due to affordability constraints affecting downstream producers.
Fertiliser demand will continue to be supported by global food security priorities and export restrictions in key producing regions, while methanol supply is anticipated to tighten as regional plants recover.
In the specialties segment, PCG remains cautious amid sluggish construction and automotive markets, with consumer goods demand showing only moderate growth.
“Accordingly, PCG remains focused on operational and commercial excellence, alongside strict financial discipline, to sustain resilience and competitiveness throughout this cycle,” Mazuin added. – May 21, 2026