• Plant Utilisation: 73%
• Revenue: RM7.9 billion
• EBITDA: RM1.3 billion
• Interim Dividend: RM480 million
PETRONAS Chemicals Group Berhad (PCG or the Group) today reported an improved financial performance for the second quarter ended 30 June 2026. The Group delivered solid earnings on the back of robust demand and higher product spreads, despite undertaking major planned maintenance activities that moderated production and sales volumes.
The Group also announced an interim dividend amounting to RM480 million for the financial year ending 31 December 2026.
Key highlights 2Q 2026 vs 1Q 2026
| 2Q 2026 | 1Q 2026 | |
| Plant Utilisation (%) | 73 | 97 |
| Revenue (RM million) | 7,903 | 7,015 |
| EBITDA (RM million) | 1,318 | 1,175 |
| EBITDA margin (%) | 16.7 | 16.7 |
| PAT (RM million) | 445 | 427 |
| PATANCI (RM million) | 414 | 401 |
PATANCI: Profit After Tax and Non-Controlling Interest
• Revenue increased 13% quarter-on-quarter to RM7.9 billion, driven by higher average product prices across both commodities and specialty chemicals portfolio, coupled with improved contribution from strategic sourcing and trading activities.
• Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) rose by RM143 million to RM1.3 billion, underpinned by better product spreads as well as contributions from value creation and cost optimisation efforts.
• Profit After Tax (PAT) increased to RM445 million, supported by higher EBITDA despite impairment of RM88 million on projects in progress.
• An interim dividend of 6 sen per share, was declared for the financial year ending 31 December 2026. The dividend amounting to RM480 million, is payable in September 2026.
Portfolio Performance
Commodities
The Group’s Fertilisers & Methanol (F&M) segment recorded lower plant utilisation of 80% following planned turnaround activities during the quarter at ASEAN Bintulu Fertilizer Sdn. Bhd. and PETRONAS Chemicals Ammonia Sdn. Bhd. in Kertih. Despite lower operating rates, average product prices increased by more than 50% quarter-on-quarter, supported by tighter global supply arising from the West Asia conflict. As a result, segment revenue rose 38% to RM3.7 billion, while EBITDA improved to RM1.2 billion, driven by stronger product spreads and higher contributions from strategic sourcing and trading activities.
The Olefins & Derivatives (O&D) segment recorded lower plant utilisation rate of 56%, mainly due to major planned turnaround activities undertaken at several facilities in Kertih Integrated Petrochemical Complex (KIPC). As a result, revenue decreased 7% quarter-on-quarter to RM2.7 billion due to lower sales volumes. This was partially mitigated by a 37% increase in average product prices on limited feedstock supply. The segment returned to positive EBITDA of RM22 million driven by higher average product spreads.
Specialty Chemicals
The Specialties segment recorded higher contribution margin across the portfolio driven by improved product prices and cost optimisation efforts, despite soft demand. EBITDA declined to RM140 million, mainly due to gains from sale of emission rights recognised in 1Q 2026.
Mazuin Ismail, PCG Managing Director/Chief Executive Officer said:
“The second quarter was operationally challenging as we undertook major planned turnaround activities at several facilities in KIPC and the urea plant in Bintulu. We upheld our commitment to safe and reliable operations by successfully completing the turnaround activities without any major HSE incidents.
Despite lower sales volumes, PCG recorded better financial performance supported by improved average product spreads amid the prolonged West Asia conflict. We captured market upside by prioritising domestic and regional customers, maximised spot sales opportunities, as well as leveraging strategic sourcing and trading activities to strengthen earnings. In addition, our value creation and cost optimisation initiatives contributed RM324 million to EBITDA year-to-date, reflecting sustained discipline in how we manage cost and capture margin, as well as a deliberate prioritisation of PCG’s long-term competitiveness over near-term gains.
Looking ahead, we remain focused on safe execution, operational discipline and business resilience as we prepare for another major planned turnaround at PETRONAS Chemicals Methanol Sdn. Bhd.’s Plant 2 and continue the ramp-up of Pengerang Petrochemical Company in the third quarter.”
Outlook
The operating environment in 2026 is anticipated to remain challenging, driven by geopolitical uncertainties, evolving trade policies and supply-demand imbalances. The Group continues to closely monitor these developments and implement appropriate measures to manage its portfolio and operational performance.
The O&D segment is expected to remain stable, with pricing primarily influenced by feedstock cost movements and producers operating rates amid continued regional oversupply and competitive market conditions. The Fertilisers market remains bullish, supported by global food security requirements, tight supply conditions and sustained import demand from key markets such as India and Australia, while Methanol price is expected to remain stable on the back of balanced supply-demand fundamentals despite potential fluctuations in regional demand.
The Group remains cautious on the Specialties segment given subdued construction and automotive end markets, while consumer goods demand shows modest growth.