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PETRONAS Chemicals Group Bhd (PetChem) posted a net loss of RM1.08 billion for the second quarter ended June 30, 2025 (2QFY2025), versus a net profit of RM777 million a year earlier, dragged by internal and external operational disruptions.
This came amid heightened geopolitical tensions in the Middle East and tariff announcements, which affected crude oil prices and weakened the US dollar.
Earnings before interest, tax, depreciation and amortisation (Ebitda) fell 56% to RM396 million.
The group also recorded a remeasurement loss from adjustments in the timing of trade payable payments and an impairment of assets at Perstorp.
Losses were further impacted by higher unrealised foreign exchange losses from the revaluation of a shareholder loan to a joint operation, as well as increased depreciation and finance costs from the same entity.
Revenue declined nearly 17% to RM6.4 billion from RM7.7 billion previously, due to lower sales volumes and average product prices.
PetChem declared a first interim dividend of 3 sen per share, amounting to RM240 million, payable on Sept 10.
For the first half of 2025, revenue dropped 7% to RM14.1 billion, mainly due to foreign currency translation from the strengthening ringgit against the US dollar and lower average product prices.
It recorded a net loss of RM1 billion, largely from the same factors that weighed on quarterly performance.
PetChem MD and CEO Mazuin Ismail said the results reflected “several operational challenges both internal and external, that impacted the plants’ performance.”
“The commodities market remains challenging amid persistent oversupply and ongoing trade as well as geopolitical tensions. Nevertheless, demand continues to grow, particularly in Asia, driven by population and urban growth. Our Pengerang facility, built to support this growth, is currently operating to meet the creditors reliability test by year-end,” he said.
“In light of the increasingly dynamic market environment, Petronas Chemicals are undertaking strategic portfolio review across value chain. While market conditions remain challenging, we are confident that our strong fundamentals combined with the initiatives currently underway will continue to strengthen our resilience,” Mazuin added. — TMR
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