Challenging market conditions impact earnings
- Petronas Chemicals expected to post sharp drop in 2023 profit
- Net profit forecasted at 2.17 billion ringgit, compared to 6.32 billion in 2022
- Full-year revenue expected to be MYR27.85 billion, down from MYR28.95 billion in 2022
- Olefins & derivatives segment likely to have weaker earnings due to off-peak demand
- Fertilizers & methanol segment may have stabilized prices due to limited supply
- Strength of the U.S. dollar could have aided company’s profits
- Petronas Chemicals shares have dropped by about 12% since October last year
Petronas Chemicals is expected to report a significant decline in its 2023 profit, with a forecasted net profit of 2.17 billion ringgit compared to 6.32 billion in 2022. The company’s full-year revenue is also expected to decrease to MYR27.85 billion from MYR28.95 billion in 2022. Weak product spreads and soft demand are likely to contribute to the weak fourth-quarter earnings. The olefins & derivatives segment may experience lower earnings due to off-peak demand, while the fertilizers & methanol segment may have stabilized prices due to limited supply. The strength of the U.S. dollar against the ringgit could have positively impacted the company’s profits. Petronas Chemicals shares have seen a decline of about 12% since October last year, reflecting the challenges faced by the petrochemical industry.
Factuality Level: 8
Factuality Justification: The article provides specific details about Petronas Chemicals’ expected net profit and revenue for 2023, along with insights from various analysts on factors affecting the company’s performance. The information is based on forecasts and expert opinions, which are clearly attributed. There are no obvious signs of bias, sensationalism, or inaccuracies in the reporting.
Noise Level: 3
Noise Justification: The article provides a detailed analysis of Petronas Chemicals’ financial performance, revenue forecast, and factors affecting its profitability. It includes insights on different segments of the company and the impact of external factors like forex rates. However, the article lacks depth in exploring broader implications or consequences of the company’s performance beyond financial metrics.
Financial Relevance: Yes
Financial Markets Impacted: Petronas Chemicals
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article provides financial information about Petronas Chemicals’ expected net profit and revenue for the fourth quarter and full year of 2023. It also discusses factors that could impact the company’s earnings, such as weak product spreads and lower downstream demand. There is no mention of any extreme events or their impact.
Public Companies: Petronas Chemicals (PETRONM)
Key People: Jeremie Yap (Analyst at Maybank Investment Bank), Steven Chan (Analyst at Affin Hwang Investment Bank), Oscar Yee (Analyst at Citi), Desmond Law (Analyst at Citi)
Reported publicly:
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