CGS International expects Lotte Chemical Titan’s shutdown of one of its two naphtha crackers in Pasir Gudang, Johor, to benefit PetChem’s domestic market share.
PETALING JAYA: Petronas Chemicals Group Bhd
’s (PetChem) recent share price recovery is likely to have run its course, while the integrated chemicals producer may face challenges pertaining to a possible impairment of its 50%-owned Pengerang Petrochemical Company Sdn Bhd (PPC) – a joint venture with Saudi Aramco.
CGS International Securities Research said further upside to PetChem’s share price is “limited” following its recent 13% bounce after falling sharply in the run-up to the release of the company’s third quarter ended Sept 30, 2024 (3Q24) results in which there was an RM775mil net loss due to a foreign-exchange (forex) translation loss from a weaker US dollar.
