PETRONAS Chemicals Group Berhad (PCHEM) Q2 2025 earnings summary

Executive summary

• Profitability in Q2 2025 was significantly impacted by operational challenges, asset impairments, and unrealised forex losses, resulting in a net loss after tax of RM1.0 billion compared to a profit in Q2 2024.

• Revenue for Q2 2025 was RM6,437 million, down 17% year-over-year and quarter-on-quarter, mainly due to lower sales volume, product prices, and a stronger Ringgit.

• Plant utilisation rate dropped to 77% from 89% in the prior year quarter due to feedstock supply disruptions and maintenance.

Financial highlights

• Revenue fell to RM6,437 million in Q2 2025 from RM7,656 million in Q1 2025, and was down 17% year-over-year.

• EBITDA dropped to RM395 million, a 64% decrease year-over-year, with margin down to 6.1% from 11.7% quarter-on-quarter.

• Net loss after tax was RM1.0 billion, mainly due to lower EBITDA, asset impairment, and forex losses.

• Cash balance decreased to RM9,708 million, reflecting PPE purchases, dividend payouts, and forex impact.

• Basic loss per share was 14 sen, compared to earnings of 10 sen per share in Q2 2024.

Outlook and guidance

• O&D market faces mixed outlook with oversupply and weak downstream demand; F&M remains firm on strong urea demand and seasonal factors.

• Specialties market continues to face margin challenges and demand uncertainty amid weak global macroeconomics.

• Key priorities for 2H 2025 include value creation, cost optimisation, and operational excellence to sustain plant utilisation above industry benchmarks.