Petronas Chemicals shares slip after posting RM1.08b quarterly loss
The integrated chemicals producer said the net loss was due to lower earnings before interest, tax, depreciation and amortisation (EBITDA), asset impairment at Perstorp Holding AB, unrealised foreign exchange loss after revaluing shareholders' loan to Pengerang Petrochemical Company Sdn Bhd (PPCSB) and finance expenses from payment adjustments for trade payables at PPCSB.
Its revenue fell by 17 per cent to RM6.44 billion from RM7.73 billion previously, mainly due to lower sales volume, the strengthening of the ringgit against the US dollar and lower product prices.
At 10.33am, PCG share price eased two sen or 0.28 per cent to RM3.58 with 3.77 million shares traded.
The counter opened at RM3.55.
In a research note today, CIMB Securities Sdn Bhd said overall results fell short of its consensus expectations, with the key variance stemming from lower-than-expected plant utilisation.
'We have cut our FY 2025, FY 2026, and FY2027 forecast earnings by 11.8 per cent, 9.1 per cent, and 8.1 per cent, respectively, to reflect the weaker-than-expected 2Q 2025 results.
'We maintain our 'Hold' rating while lowering our target price (TP) to RM3.45 per share,' it added.
Maybank Investment Bank Bhd said PCG turning in a net loss in 2Q 2025 is pretty much in line with its views in early July 2025.
'We reiterate our bearish view on the olefins and derivatives (O&D) subsector due to the ongoing regional oversupply glut (mainly from China).
'We make no changes to our FY 2025-2027 earnings forecasts and maintained a 'Sell' rating with a TP of RM2.59 per share,' it said.
Hong Leong Investment Bank Bhd (HLIB) said PCG will continue to operate under an oversupply environment, with muted downstream demand continuing to put on pressure on ethylene prices.
'We slash our FYs 2025-2027 profit forecasts by -43 per cent/-27 per cent/-20 per cent to factor in a lower plant utilisation and sales volume for the O&D segment.
'We expect it to remain loss-making due to subdued product prices amid persistent regional oversupply, weak downstream demand across key end markets, and sustained margin compression from unfavourable paraxylene-naphtha spreads,' the report said.
It has a 'Sell' rating with TP of RM2.18 per share, it said. — Bernama
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