IRPC’s Q4 earnings to be lower than Q3 - brokerage

12 November 2007 08:15  [Source: ICIS news]

MUMBAI (ICIS news)--Kim Eng Securities expected Thailand's IRPC's fourth-quarter earnings to be lower compared with its third-quarter performance, due to reduced margins in olefins, aromatics and high-density polyethylene (HDPE), it said on Monday.

The local brokerage attributed the lower petrochemical spread in the forthcoming quarter to high naphtha feedstock prices, which were up about 55% year on year to $810/tonne, while product prices were down.

The company, which operates southeast Asia’s largest integrated petrochemical complex, announced on Friday third-quarter net profits of baht Bt3.5bn ($110.4m), up 18% year on year but down 23% quarter on quarter.

For full-year 2007, IRPC is expected to post normalised earnings of Bt11.09bn and earnings per share (EPS) at Bt0.57, Kim Eng added.

The brokerage maintained its "fully valued" rating on the company's stock at Bt6.80/share.

Shares of the company were down 1.49% to Bt6.60 at 05:31 GMT on the Stock Exchange of Thailand.

IRPC, formerly known as Thai Petrochemical Industry (TPI), suffered the largest corporate bankruptcy in Thailand's 1997 financial crisis.

($1 = Bt31.58)

By: Isha Jha
+65 6780 4359

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