Further upside of PetChem share price limited

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.