PETRONAS Chemicals Group posts resilient 2Q 2026 earnings amid major turnarounds
- Group revenue was RM7.9 billion in 2Q 2026, up 13% quarter-on-quarter.
- EBITDA rose to RM1.3 billion with a 16.7% margin, an increase of RM143 million qoq.
- Plant utilisation fell to 73% due to major planned turnaround activities at KIPC and the Bintulu urea plant.
- An interim dividend of RM480 million (6 sen per share) was declared, payable September 2026.
Financial results
PCG reported 2Q 2026 revenue of RM7.9 billion, a 13% increase quarter-on-quarter, and EBITDA of RM1.3 billion (16.7% margin), up RM143 million. Profit after tax was RM445 million and PATANCI was RM414 million. The Group recognised an RM88 million impairment on projects in progress and noted RM324 million contribution year-to-date from value creation and cost optimisation initiatives.
Operational impact and dividends
Plant utilisation declined to 73% in 2Q due to major planned turnarounds across Kertih Integrated Petrochemical Complex (KIPC) and the urea plant in Bintulu, with 1Q utilisation at 97% for comparison. Despite lower volumes, higher average product prices and strategic sourcing/trading supported margins. The Board declared an interim dividend of RM480 million (6 sen per share), payable in September 2026.
Portfolio performance
Fertilisers & Methanol recorded 80% utilisation, revenue of RM3.7 billion and EBITDA of RM1.2 billion driven by >50% qoq price increases. Olefins & Derivatives ran at 56% utilisation, revenue of RM2.7 billion and returned to positive EBITDA of RM22 million. Specialties posted EBITDA of RM140 million, lower partly due to emission-rights gains recognised in 1Q.
Outlook
The Group expects a challenging 2026 with geopolitical and supply-demand uncertainties. PCG expects O&D to remain stable, fertilisers to stay bullish, methanol stable, and remains cautious on Specialties given subdued construction and automotive demand. Another major turnaround and Pengerang ramp-up are planned in the third quarter.
Source: Petronas
