Petronas Chemicals Shares Slip 4.57 Pct On Weaker 1Q2025 Earnings

KUALA LUMPUR, May 21 (Bernama) -- Petronas Chemicals Group Bhd (PCG) shares slipped by 4.57 per cent in early trading today after reporting weaker earnings for the first quarter ended March 31, 2025 (1Q2025).

The decline in earnings was attributed to lower sales margins, supply issues at Pengerang Petrochemicals Company Sdn Bhd, foreign exchange losses, and rising costs.

As at 10.30 am, PCG fell 17 sen to RM3.55 with 3.61 million shares traded.  

CIMB Investment Bank Bhd described PCG’s 1Q2025 results as broadly in line with its expectations, although they accounted for only 10 per cent of the bank’s full-year forecast, as stronger earnings are anticipated in the second half of the financial year (FY) ending Dec 31, 2025 .

 It expects PCG’s second-quarter results to be largely similar to those in 1Q2025, impacted by ongoing operational disruptions, including technical issues at the Kertih plant, which continue to affect the olefins and derivatives (O&D) segment.

The bank also expects earnings to recover in the second half of 2025, underpinned by normalising operations and the absence of major unplanned outages.

“Additionally, PCG is seeking approval from the Department of Occupational Safety and Health to defer the planned turnaround of its second cracker in Kertih from 4Q2025 to 1Q2026. If approved, this could allow for optimised production at Kertih in 4Q2025.

Therefore, our FY2025–FY2027 earnings forecasts remain unchanged,” it said in a research note today.

Meanwhile, MIDF Amanah Investment Bank Bhd said the O&D segment is anticipated to remain bearish, as prices continue to soften amid muted downstream demand and balanced supply from China’s new capacities.

However, the tight supply of ethylene glycols and paraxylene due to extensive turnaround activities may support the near-term outlook, it said.

MIDF Amanah noted that PCG’s fertilisers and methanol segment is likely to see improved urea demand during planting season in Southeast Asia, though ammonia and methanol may continue to face weak industrial demand due to geopolitical uncertainties and supply recovery.

“Despite the resiliency in Specialities, uncertainties persist due to mixed demand across end markets. The construction and automotive sectors are expected to face headwinds from tariffs, while demand in the consumer sector is likely to remain flat,” it added.

-- BERNAMA