Petronas Chemical shares a hit in early trading

Petronas Chemicals Group Bhd shares were a hit in early trading on Bursa Malaysia this morning on the weaker first quarter results delivered by the group on Wednesday.

As at 10am, the counter dipped five sen to RM6.74 with 460,900 shares changing hands.

Alliance Research Sdn Bhd said however that its forecast for Petronas Chemicals remained intact despite weak first quarter results.

"Plant utilisation at the fertiliser and methanol segment will recover from the second quarter onwards as the methane gas issue has been resolved in the first quarter. The urea plant maintenance has also been completed.

"In the olefins and derivatives segment, we expect a dip in utilisation to 80-85% in the second quarter because of scheduled cracker maintenance," the research house said in a note.

However, the group's plant utilisation and earnings would normalise in the second half of this year and could exceed 90%, barring unforeseen circumstances, the research firm added. – Bernama, May 9, 2014.


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