PETALING JAYA: Petronas Chemicals Group Bhd
(PetChem) could return to profitability in financial year 2026 (FY26), marking a turnaround after a challenging period weighed by losses and operational headwinds.
The improved outlook is anchored on stronger product pricing, higher plant utilisation and easing losses from its petrochemical operations.
According to BIMB Research, the company’s earnings recovery is expected to gain traction amid a more supportive operating environment.
“We are now projecting FY26 to turn profitable with core net profit of RM1.3bil, from a core net loss of RM755.7mil, supported by higher utilisation of 90% (from 88%) and stronger product prices by 19.6%, reflecting the current operating environment,” the research house said.
Concurrently, BIMB Research raised its FY27 to FY28 earnings forecasts for PetChem by an average 85.8%.
It said the revised forecasts are driven by firmer petrochemical prices, improved product spreads and better performance from gas-based assets where feedstock costs remain relatively stable.
Following revisions, the research house raised its sum-of-parts target price to RM5.71 from RM3.49. However, it maintained a “hold” call, noting that valuations already reflect much of the positive outlook and that further upside in product prices may be limited at current levels.
