PETRONAS Chemicals Group Berhad (PCHEM) Q1 2026 earnings summary

Executive summary

• Earnings improved in 1Q 2026, reversing prior losses, driven by stronger product spreads, higher average product prices, and lower operating costs compared to 4Q 2025.

• Profit after tax rose sharply to RM427 million from RM18 million in Q1 2025, supported by higher EBITDA, favorable FX, and gains from investment disposals.

• Plant utilisation rate remained high at 97%, up from 94% year-over-year, with higher sales volume, especially in Specialty Chemicals.

Financial highlights

• Revenue increased to RM7,015 million from RM6,600 million in 4Q 2025, but declined 8% year-over-year, mainly due to currency effects and lower segment contributions.

• EBITDA rose sharply to RM1,175 million from RM115 million quarter-on-quarter, and increased 32% year-over-year to RM1.2 billion.

• Cash balance remained stable at RM9,655 million, with net cash from operations up 21% to RM939 million.

• Total assets stood at RM57,583 million, with total equity at RM37,000 million as of 31 March 2026.

• Basic earnings per share was 5 sen, compared to a loss per share in Q1 2025.

Outlook and guidance

• Operating environment expected to remain volatile due to geopolitical tensions, supply chain disruptions, and uneven demand.

• O&D prices may soften, while Fertilisers market remains tight and Methanol supply is constrained by plant turnarounds.

• Specialties segment faces subdued demand in construction and automotive, with modest growth in consumer goods.