KUALA LUMPUR: Petronas Chemicals Group Bhd’s shares on Bursa Malaysia experienced an increase during the mid-morning session despite the company reporting a net loss of RM789 million for the third quarter ended September 30, 2024 (3Q 2024). This performance is in contrast to the net profit of RM424 million recorded during the same period last year.

According to BERNAMA News Agency, the net loss was primarily due to unrealised foreign exchange losses amounting to RM1.1 billion. Despite this setback, Petronas Chemicals saw a revenue increase for the quarter, reaching RM7.986 billion compared to RM6.784 billion previously. Over the nine months ending September 30, 2024 (9M 2024), the company achieved a net profit of RM656 million, supported by a revenue of RM23.213 billion.

CIMB Securities, in a note today, upgraded its rating on Petronas Chemicals from a ‘hold’ to a ‘buy’ call. The firm expressed that the market overreacted to the unrealised forex loss, causing a 17 percent drop in the share price since Novem
ber 4. Following earnings revisions, CIMB Securities has adjusted its target price to RM5.41 per share. The note also highlighted potential risks and opportunities, indicating that global GDP growth could boost demand and lead to an earnings recovery for Perstorp, while challenges could arise from larger-than-expected losses at Pengerang Petrochemical Company (PPC) and reduced feedstock price discounts from Petronas.

By 11 am, Petronas Chemicals shares had risen by 9.0 sen to RM4.66, with a trading volume of 3.86 million shares.