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Petronas Chemicals Group Bhd faced a decline in revenue during the third quarter of 2023 due to shrinking sales volumes and margins attributed to weak global manufacturing demand. The specialities segment, contributing 22% to the Group's revenue, experienced ongoing destocking activities amidst fierce competition, particularly in Europe. 

CEO Mohd Yusri Mohamed Yusof acknowledged the impact of macroeconomic uncertainties on the specialities segment, with a slight recovery noted in the automotive and transport sectors linked to the rebound in travel and tourism. "Despite a brief rally in selected chemical product prices, he anticipates a seasonal slowdown in olefins and derivatives, with fertilizer demand possibly supported by an expected Indian urea tender shipment in December," he added.

In Q3FY23, Petronas Chemicals reported a net profit of RM424 million, significantly down from RM1.9 billion in the same quarter of 2022. Basic earnings per share also dropped to five sen from 24 sen in the comparative quarter, while revenue decreased to RM6.78 billion from RM7.03 billion in Q3FY22. Although revenue rose to RM21.45 billion from RM20.25 billion in 9MFY22, Mohd Yusri attributed the lower plant utilization rate of 77% in Q3FY23 to unscheduled plant shutdowns and planned maintenance works.

Meanwhile, Lotte Chemical Titan Holding Bhd (LCT) anticipates continued volatility in the petrochemical industry amid the current external environment. For Q3FY23, LCT reported a smaller net loss of RM55.6 million, or loss per share of 2.44 sen, compared to RM355.5 million or 15.61 sen in the same quarter a year ago. Quarterly revenue also decreased to RM1.96 billion from RM2.4 billion a year ago. Over the first nine months, LCT posted a net loss of RM593.8 million on revenue of RM5.8 billion.