Petronas Chemicals stock in focus as PETRONAS capex may recover
Published on 11/13/2026 at 02:56 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSCapex cycle sets sector tone
- PETRONAS's adjusted capital spending fell 5% year over year in the first half of 2026 to RM16.8 billion.
- MBSB Research expects order flow to improve from 2027, with a stronger earnings effect in 2027 and 2028.
- PETRONAS Chemicals returned to profit in the second quarter of 2026, but margin pressure remains a key investor issue.
Petronas Chemicals stock is in focus after analysts pointed to a possible recovery in PETRONAS capital spending from 2027. The Star reported on Friday, November 13, 2026, that MBSB Research expects stronger oil and gas services activity after a period of restrained investment.
Investment cycle may turn
PETRONAS's adjusted capital spending fell about 5% year over year in the first half of 2026 to RM16.8 billion, excluding RM24.6 billion of investments in associates and joint ventures. The reported headline total was RM41.4 billion, with much of the additional investment linked to PRefChem.
MBSB Research expects capital allocation to normalize after the PRefChem transaction, which is expected to be completed in the second half of 2026. The research firm sees order flow improving from 2027 and a stronger earnings effect for oil and gas services companies in 2027 and 2028.
Profit recovery meets margin risk
The backdrop is relevant to PETRONAS Chemicals because the group operates within the broader PETRONAS downstream and petrochemical system. Simply Wall St reported that the company returned to profit in the second quarter of 2026, while revenue rose to RM7.90 billion. Its analysis also highlights continued pressure in olefins and derivatives, leaving utilization, product spreads and cost discipline central to the investment case.
MBSB Research expects PETRONAS's dividend to fall to RM27 billion in 2026 from RM32 billion in both 2024 and 2025, before recovering to RM32 billion in 2027. For investors, the outlook therefore combines a potentially improving industry spending cycle with questions over capital allocation and earnings quality.
Business spans core chemicals
PETRONAS Chemicals Group Berhad produces and sells chemicals through its Olefins and Derivatives, Fertilisers and Methanol, and Specialties segments. Its products include polymers, ammonia, urea, methanol and specialty chemicals for industrial, agricultural and consumer supply chains, with headquarters in Kuala Lumpur, Malaysia. Simply Wall St lists Batu Kawan Berhad, Scientex Berhad and Lotte Chemical Titan Holding Berhad among its comparables; PETRONAS Chemicals is the larger company by market capitalization among those named Malaysian peers.
PETRONAS Chemicals at a glance
- Company: PETRONAS Chemicals Group Berhad
- Ticker: PCHEM on Bursa Malaysia
- Market capitalization: RM33.6 billion, according to Simply Wall St
- Core segments: Olefins and Derivatives; Fertilisers and Methanol; Specialties
Malaysia's broader equity market remains sensitive to energy prices, industrial demand and corporate investment plans. Current market developments in the DAX provide a wider reference point for regional risk appetite.
