Weak outlook for PetChem on cyclical headwinds

Kenanga Research has cut its FY23-FY24 net profit forecasts for PetChem by 62% and 17%, respectively, to account for the weaker average selling prices and volumes in the F&M segment.

PETALING JAYA: Petronas Chemicals Group Bhd’s (PetChem) profit outlook for the second quarter of financial year 2023 (2Q23) looks even weaker than 1Q23, given the cyclical headwinds facing the petrochemical sector, say analysts.

The group registered 1Q23 core net profit of RM604mil, down 29% quarter-on-quarter and fell 71% year-on-year.