Lower plant utilisation weighs on PetChem's prospects

PETALING JAYA: Macro and operational challenges resulting in lower plant utilisation may impact chemical manufacturer Petronas Chemicals Group Bhd’s (PetChem) first quarter of the financial year 2025 (1Q25), although higher urea prices may support the company’s fertiliser and methanol division’s forecast.

Kenanga Research, which recently met the company’s management, said PetChem “is poised for a challenging 1QFY25 as overall plant utilisation is projected to fall below 90% from a quarter before due to unplanned plant downtimes”.