PETALING JAYA: Petronas Chemicals Group Bhd’s net profit for the first quarter ended March 31, 2026 surged to RM401mil from a net loss of RM18mil in the corresponding quarter last year, driven by higher product spreads, increased contribution from the specialities segment and lower plant operating costs.
Quarterly revenue fell 8.37% year-on-year to RM7.02bil due to the strengthening of the ringgit against the US dollar, as well as lower revenue contribution from a joint operation entity and the specialities segment. This was partially offset by higher contribution from the fertilisers and methanol segment.
Managing director and CEO Mazuin Ismail said the West Asia conflict had reshaped the group’s operating landscape with remarkable speed, creating a more volatile and complex environment.
“It also underscored the vulnerability of the industry supply chain, given the region’s strategic importance in global feedstock and chemicals supply,” Mazuin said in a statement.
He said the group continues to undertake a portfolio review and rationalisation exercise to ensure its investments, value chain and product offerings remain robust and in line with evolving market requirements.
“Our commitment to safe and reliable operations remains unwavering, particularly as we undertake scheduled turnaround activities at several O&D plants in Kertih and the fertiliser plant in Bintulu in the second quarter,” he said.
On outlook, PCG said the operating environment is expected to remain volatile amid ongoing geopolitical developments, supply chain disruptions and softer downstream demand.
The group said prices in the olefins and derivatives (O&D) segment are expected to moderate due to affordability constraints affecting downstream manufacturers.
It said the fertilisers segment would continue to be supported by global food security priorities and export restrictions in key producing regions, while methanol supply is expected to tighten due to scheduled regional plant turnarounds.
For the specialties segment, PCG said it remains cautious amid subdued construction and automotive end markets, although demand for consumer goods is showing modest growth.
Against this backdrop, the group said it remains focused on operational and commercial excellence, as well as strict financial discipline, to sustain resilience and competitiveness through the cycle.
The Sun Malaysia
