ASEAN KEY DESTINATIONS
Petronas' earnings upgraded
"Financial year 2011 was above expectations. We are upgrading our financial 2012 earnings forecast in line with the better outlook for the company.
"We continue to like the company's strong backing from Petronas group, especially in keeping its feedstock prices low, as well as, attractive dividend payout ratio of 50 per cent, which is the highest among its closest peers," it said in a research note today.
OSK maintained a "buy" on the company.
However, it said the company is still subject to uncontrollable factors which included fluctuations in the international price of petrochemical products, global economic conditions and utilisation of its production facilities based on demand.
Meanwhile, AmResearch, which maintained a "buy" on Petronas Chemicals, said the current Middle East political turmoil had pushed crude oil prices back to the US$100 per barrel threshold.
"As petrochemical prices have a high correlation to naphtha, which is a by-product of oil refining, we are sanguine about the company's earnings outlook," it said.
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