PETRONAS CHEMICALS' SHARES UP AT MID-MORNING DESPITE 3Q NET LOSS

KUALA LUMPUR, Nov 21 (Bernama) -- Petronas Chemicals Group Bhd’s shares on Bursa Malaysia rose during the mid-morning session despite recording a RM789 million net loss in the third quarter ended Sept 30, 2024 (3Q 2024) compared with a net profit of RM424 million in the same period last year. 

In a Bursa Malaysia filing yesterday, Petronas Chemicals said that the net loss was mainly attributed to unrealised forex losses of RM1.1 billion.

However, revenue for the quarter jumped to RM7.986 billion against RM6.784 billion.

For the nine months ended Sept 30, 2024 (9M 2024), the integrated chemicals producer registered a net profit of RM656 million on the back of a revenue of RM23.213 billion.

In a note today, CIMB Securities has upgraded its rating on Petronas Chemicals to a ‘buy’ call from a ‘hold’ call, believing the market has overreacted to the unrealised forex loss, which led to a 17 per cent decline in the share price since Nov 4. 

“Post earnings revisions, we have lowered our target price to RM5.41 a share.

“Key upside risks include global gross domestic product (GDP) growth, which could lead to higher demand and an earnings recovery for Perstorp. 

“Downside risks include larger-than-expected Pengerang Petrochemical Company (PPC) losses and smaller feedstock price discounts from Petronas,” it added. 

At 11 am, Petronas Chemicals shares rose by 9.0 sen to RM4.66, with 3.86 million shares traded.

-- BERNAMA