PETRONAS Chemicals Group 1Q2026: 97% plant utilisation and improved earnings

Quarter highlights

PETRONAS Chemicals Group reported 1Q 2026 plant utilisation of 97%, revenue of RM7.015 billion and EBITDA of RM1.175 billion, lifting the EBITDA margin to 16.7% from 1.7% in 4Q 2025. Profit after tax rose to RM427 million compared with a loss after tax of RM730 million in the prior quarter, supported by stronger operating performance, lower unrealised FX losses and gains on disposals.

Portfolio performance

The Fertilisers & Methanol segment ran at 103% utilisation; urea prices rose ~18% and methanol ~13%, with segment revenue at RM2.6 billion and EBITDA of RM1.1 billion. Olefins & Derivatives recorded 87% utilisation, affected by planned MTBE maintenance, with revenue of RM2.9 billion and LBITDA improving to a RM91 million loss from RM600 million. Specialty Chemicals saw a 17% quarter‑on‑quarter revenue increase to RM1.4 billion, EBITDA of RM198 million, higher volumes in Intermediates, and contributions from the sale of emission rights.

Management actions

Management cited tighter global supply from the West Asia conflict and highlighted the Group’s integrated feedstock access via domestic pipelines. The Group completed divestments yielding RM63 million in gains and continues portfolio review, cost optimisation and scheduled plant turnarounds in O&D (Kertih) and fertiliser (Bintulu) in the second quarter.

Outlook

PCG expects continued volatility from geopolitics, supply disruptions and softer downstream demand. O&D prices are expected to moderate, fertilisers remain supported by food security and export restrictions, methanol supply may tighten on regional turnarounds, and Specialties will be cautious given subdued construction and automotive markets.