Is Petronas Chem (5183) Halal?

KLS Basic Materials Malaysia $46.4B
✓ HALAL
Confidence: 95/100
Petronas Chem (5183) is Halal under all 5 major Shariah screening standards. With a debt ratio of just 15.9% against the AAOIFI threshold of 30%, Petronas Chem comfortably passes the key financial ratio tests. The company operates in the Basic Materials sector (Chemicals), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 15.9%
/ 30%
28.0%
/ 30%
8.0%
/ 30%
0.0%
/ 5%
✓ HALAL
DJIM 15.9%
/ 33%
28.0%
/ 33%
8.0%
/ 33%
0.0%
/ 5%
✓ HALAL
MSCI 9.4%
/ 33%
16.7%
/ 33%
4.7%
/ 33%
0.0%
/ 5%
✓ HALAL
S&P 15.9%
/ 33%
28.0%
/ 33%
8.0%
/ 33%
0.0%
/ 5%
✓ HALAL
FTSE 9.4%
/ 33%
16.7%
/ 33%
4.7%
/ 50%
0.0%
/ 5%
✓ HALAL

Financial Highlights

EPS
$-0.27
Dividend Yield
121.0%
Payout: 194.0%
P/B Ratio
1.3
EV/EBITDA
48.1
EV: $43.6B
Revenue
$27.5B
Growth: -11.5%
Beta
0.1
Low volatility
Current Ratio
1.4

Profitability

Gross Margin 10.7%
Operating Margin -7.5%
Net Margin -7.8%
Return on Equity (ROE) -5.3%
Return on Assets (ROA) -1.5%

Cash Flow & Balance Sheet

Operating Cash Flow$3.1B
Free Cash Flow$1.1B
Total Debt$5.4B
Debt-to-Equity14.6
Current Ratio1.4
Total Assets$57.7B

Price & Trading

Last CloseMYR 5.80
50-Day MAMYR 3.84
200-Day MAMYR 3.76
Avg Volume11.2M
Beta0.1
52-Week Range
MYR 2.75
MYR 5.91

About Petronas Chem (5183)

CEO
Mr. Mazuin bin Ismail
Sector
Basic Materials
Industry
Chemicals
Country
Malaysia
Exchange
KLS
Market Cap
$46.4B
Currency
MYR

PETRONAS Chemicals Group Berhad, an investment holding company, engages in production and sale of chemicals. The company operates through Olefins and Derivatives, Fertilisers and Methanol, Specialties, and Other segments. It offers polymers comprising HDPE blown films, blow moulding, and pipes; linear low density polyethylene; and homopolymer, copolymer, and terpolymer; and PETRONAS Wellbore, PETRONAS Rig, and PETRONAS Tank solutions. In addition, the company offers ethylene, propylene, ethylene glycols, butyl glycol ethers, butanol (n-butanol and iso-butanol), butyl acetate, polyethylene glycols, ethonas FAE, nonylphenol ethoxylates, ethanolamines ethonas, and gas treating solvents; methanol, paraxylene, benzene, methyl tertiary butyl ether, and butadiene; ammonia and urea; PETRONAS Aireblue, a diesel exhaust fluid; and oxo-alcohols, as well as trades in and markets petrochemical products; and trades in chemical products. Further, it engages in processing feedstock into ammonia, syngas, carbon monoxide, paraxylene, benzene and other byproducts, n-butane, hydrocarbon by-products, isobutylene, ethylene oxide derivatives, propylene derivatives, and related chemical products; and manufacturing of basic specialty polyols and propionates, formats, organic acids and formaldehyde, aldehydes, carboxylic acids, plasticizers, phthalic anhydride, trimethylolpropane, pentaerythritol, di- pentaerythritol, sodium and calcium formats, preservative acids, nutritional salts, and other chemical products. Additionally, the company owns, operates, and manages Kertih marine facilities; processing natural gas into urea and ammonia; reselling, formulating, and manufacturing silicones, lube oil additives, and chemicals; and real estate business. The company was founded in 1985 and is based in Kuala Lumpur, Malaysia. PETRONAS Chemicals Group Berhad is a subsidiary of Petroliam Nasional Berhad.

Related Halal Stocks in Basic Materials

Frequently Asked Questions

Is Petronas Chem (5183) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Petronas Chem is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Petronas Chem's debt ratio?

Petronas Chem's debt ratio is 15.9% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 9.4%.

What are Petronas Chem's key financial metrics?

Petronas Chem has a market capitalization of $46.4B, and revenue of $27.5B. The company maintains a gross margin of 10.7% and a net margin of -7.8%. Return on equity stands at -5.3%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.