What were the main drivers behind Petronas Chemicals Group's return to profitability in Q1, and how did segment performance differ?

Petronas Chemicals Group (PCG) returned to profitability in Q1 with a net profit of 401 million Malaysian ringgit, reversing a 18 million ringgit loss year-on-year, driven by improved operating performance, lower unrealized foreign exchange losses, and a 63 million ringgit gain from disposals of a subsidiary and an associate. Segment-wise, the fertilizers and methanol segment strongly outperformed — achieving 103% plant utilization, 6% higher revenue (2.6 billion ringgit), 22% higher EBITDA (1.1 billion ringgit), and 27% higher profit (794 million ringgit) — supported by robust fertilizer demand and tightening methanol supply. In contrast, the olefins and derivatives segment struggled with a 16% revenue decline (to 2.9 billion ringgit), negative EBITDA of 91 million ringgit, and a widened after-tax loss of 401 million ringgit, due to lower joint operation contributions and weaker product spreads, despite an 87% utilization rate and reduced plant operation costs.

Why did PCG’s overall revenue decline despite higher profitability, and what is its outlook for key segments amid geopolitical volatility?

PCG’s overall revenue declined 8.3% year-on-year to 7 billion ringgit primarily due to the strengthening Malaysian ringgit against the US dollar and lower contributions from its joint operation entity and specialties segment — partially offset by higher revenue from fertilizers and methanol. Looking ahead, PCG warns of a volatile operating environment shaped by ongoing geopolitical developments (notably the escalated West Asia conflict, which tightened supply and raised energy/product prices), supply chain disruptions, and softer downstream demand. It expects fertilizer demand to remain robust due to global food security priorities and export restrictions in key producing regions; methanol supply to tighten further due to scheduled regional plant turnarounds; and the specialties segment to face continued caution amid subdued construction and automotive markets, though consumer goods demand shows modest growth. CEO Mazuin Ismail emphasized that PCG’s integrated model — with domestically sourced feedstock via an extensive pipeline network — helps mitigate global supply disruptions, and the company continues portfolio rationalization to align with evolving market demands.

Petronas Chemicals swings to profit, warns of volatile outlook

May 21, 2026

Petronas Chemicals reported a Q1 net profit of RM 401 million despite an 8.3% revenue decline. The company warned of a volatile outlook due to geopolitical tensions and supply chain issues, noting robust fertilizer demand and tightening methanol supply.

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