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MARKET • 20/08/2026 11:20 AM

Petronas Chemicals' Shares Slid 2.66 Pct In Early Trade

KUALA LUMPUR, Aug 20 (Bernama) --  Petronas Chemicals Group Bhd's (PCG) share price slid 2.66 per cent in early trade on Thursday, despite announcing a higher net profit in the second quarter ended June 30, 2026 (2Q 2026), yesterday.

At 10.44 am, its shares were down 12 sen to RM4.57, with 2.10 million units traded.

 The integrated chemicals producers’ net profit surged to RM414 million in 2Q 2026 from a net loss of RM1.08 billion in 2Q 2025, driven by robust demand and higher product spreads.

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Its revenue improved by 13 per cent to RM7.90 billion from RM6.43 billion previously, due to higher average product prices across both commodities and specialty chemicals portfolio, coupled with improved contribution from strategic sourcing and trading activities. 

In a note, Hong Leong Investment Bank Bhd (HLIB) said the results came in below both its and consensus full-year forecasts.

The earnings shortfall was mainly attributable to lower-than-expected utilisation rates due to turnaround activities at the Kertih Integrated Petrochemical Complex (IPC) and ASEAN Bintulu Fertiliser (ABF) plants. 

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However, HLIB expects utilisation rates to improve in the second half of financial year 2026 (2H 2026), with minimal turnaround activities at PC methanol 2 and PC fertiliser Sabah in 3Q 2026.

“We cut our FY2026 earnings forecast for PCG by 22 per cent to factor in lower utilisation rates for the olefins and derivatives (O&D) segment, and maintain the FY2027-2028 earnings forecast.

“Overall, we maintain our ‘buy’ call on PCG, with a lower target price (TP) of RM5.49, from RM5.56 previously,” it said.

Meanwhile, CIMB Securities Sdn Bhd revised its FY2026 net profit forecast for PCG down by 18 per cent to reflect lower product spreads as the O&D margin missed expectations.

“We also cut our PCG FY2027 and FY2028 earnings forecast by nine per cent and six per cent, respectively, after incorporating more conservative margin assumptions for the O&D and fertilisers and methanol segments.

“Overall, we reiterate our ‘hold’ recommendation with a lower TP of RM5.00 from RM5.45 previously,” it said.

-- BERNAMA

 

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