PETRONAS CHEMICALS DROPS 8.69 PCT ON LOWER FY2024 PROFIT

KUALA LUMPUR, Feb 24 (Bernama) -- Petronas Chemicals Group Bhd (PCG) shares fell in early trade on Bursa Malaysia after reporting a lower net profit for the financial year ended Dec 31, 2024 (FY2024).

At 10.10 am, the stock dropped 8.69 per cent, or 36 sen, to RM3.70, with 56.91 million shares traded.  

In a filing with Bursa Malaysia on Friday, the company posted a net profit of RM1.175 billion for FY2024, down from RM1.696 billion a year earlier. However, revenue rose to RM30.67 billion from RM28.67 billion, driven by higher sales volumes across its three business segments.  

Maybank Investment Bank Bhd (Maybank IB) maintained its "sell" call on PCG, lowering its target price to RM3.06 from RM3.82.  

"PCG swung to a core net loss in the fourth quarter of 2024 (4Q 2024), missing expectations. We cut our FY2025 and FY2026 net profit forecasts by 20 per cent and 21 per cent, respectively," it said in a note.  

The revision was attributed to narrower product spreads and weaker profit margins in the olefins and derivatives (O&D) segment due to continued losses at Pengerang Petrochemical Company Sdn Bhd (PPC).  

PCG’s O&D segment posted a Loss After Tax of RM86 million in 4Q 2024.  

Maybank IB also noted that PPC did not receive any “special discounts” in the quarter as Pengerang Refining Company Sdn Bhd was unprofitable.  

"The consolidation of PPC’s losses into PCG’s books will likely weigh on earnings in FY2025.  

"We believe the worst is not over for the petrochemical sector. PCG’s valuations remain high at 24 times our revised FY2025 earnings per share, given the challenging sector outlook," it said.  

-- BERNAMA