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Petronas Chemicals Group dialed in its first quarterly loss since its inception in 1988, citing the sharp depreciation of the US dollar against the Malaysian ringgit as the sole factor, The Edge reported.

For the third quarter, the company posted a net loss of RM789 million, driven by a 12.4% depreciation of the US dollar against the Malaysian ringgit during the period.

A major contributor to the loss was Petronas Chemicals' 50% stake in Pengerang Petrochemical Company Sdn Bhd (PPC). The revaluation of USD-denominated payables and shareholder loans tied to PPC accounted for approximately RM1 billion of the total losses. Additional foreign exchange adjustments added RM86 million to the deficit.

Despite these setbacks, the group’s revenue performance showed resilience. Revenue increased by 18% year-on-year to RM7.99 billion in the third quarter, supported by higher sales volumes, stronger product prices, and improved plant utilisation rates, which rose from 77% to 92%.

Looking ahead, Petronas Chemicals expressed cautious optimism. The company noted that a potential appreciation of the US dollar could reduce some of the unrealised losses. However, it expects softening prices for olefins and derivatives due to weak seasonal demand, ample supply, and the addition of new production capacity in Northeast Asia.

Written by: Derek Yong Zher

Country
Malaysia