AlwaysFree: Low Utilization At Pengerang Seen Hurting Petronas Chemicals’ Earnings Next Year

Petronas Chemicals Group Bhd. (PetChem) reported robust earnings in the third quarter of 2020, beating estimates from some analysts. However, utilization rates at its new Pengerang Integrated Petroleum Complex are expected to be below 60%, hurting the company’s earnings for the financial year 2021 (FY21) and FY22, according to a research note by analysts at Maybank Investment Bank Bhd. However, Maybank IB projects that PetChem’s earnings would improve on a quarterly basis in the last three months of 2020, supported by higher sales volume and stable average selling prices. CGS-CIMB Securities Sdn Bhd also expects petrochemical prices to continue rally through November which can bolster PetChem’s earnings this quarter.