PETRONAS Chemicals Group Berhad (PCHEM) Q1 2025 earnings summary

Executive summary

• Revenue increased 2% year-over-year to RM7,656 million, driven by higher sales volumes and strategic sourcing, despite a stronger Ringgit against the US Dollar.

• EBITDA declined 23% year-over-year to RM892 million, with margin dropping to 11.7% due to lower product spreads, forex losses, and higher operating costs.

• Profit after tax dropped sharply to RM18 million from RM703 million in the same quarter last year, impacted by lower EBITDA, higher depreciation, finance costs, and foreign exchange losses.

• Plant utilisation improved to 94% from 87% year-over-year, mainly due to better performance in the Fertilisers and Methanol segment.

Financial highlights

• Sales volume rose 14% year-over-year to 2.69 million MT, mainly for urea, propylene, and MTBE.

• Revenue: RM7,656 million (Q1 2025) vs RM7,499 million (Q1 2024).

• EBITDA: RM892 million (Q1 2025) vs RM1,160 million (Q1 2024).

• Profit after tax: RM18 million (Q1 2025) vs RM703 million (Q1 2024).

• Net cash generated from operating activities: RM778 million, down 26% year-over-year.

Outlook and guidance

• Olefins and derivatives prices expected to be pressured by US tariffs, new supply, and weak downstream demand.

• Fertiliser prices forecasted to remain firm due to limited supply and seasonal demand, while ammonia and methanol prices are expected to soften.

• Specialties market faces ongoing demand uncertainty amid mixed global economic outlook and sector-specific headwinds.

• Focus remains on operational excellence and maintaining plant utilisation above industry benchmark.