PCG Positioned for Growth Amid Global Fertilizer Shortage
PCG's Fertilizer and Methanol division is benefiting from a supply disruption in the Middle East, with projected net profits of RM1.5 billion in 2026. The company maintains operational efficiency and a disciplined capital allocation strategy, vital for navigating current market volatility.
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Petronas Chemicals Group Berhad (PCG) is expected to achieve RM1.5 billion in net profit for 2026, reversing prior losses due to a surge in global Urea and Methanol prices caused by Middle East supply disruptions. Despite a net loss of RM2.14 billion in FY2025, PCG's disciplined capital allocation and commitment to shareholder returns, including a 4 sen dividend, reflect confidence in recovery.
With high plant utilization at 92% and an EBITDA improvement of over RM400 million year-to-date, PCG is positioned as a low-cost producer in a volatile market. The acquisition of Perstorp enhances its specialty chemicals portfolio, insulating it from cyclicality. Market valuation is currently RM5.37, with upward target revisions anticipated as the fertilizer super-cycle unfolds.
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