Erste Group Bank places Turkey’s Petkim on underperformers list

05 November 2012 12:06  [Source: ICIS news]

LONDON (ICIS)--Erste Group Bank has placed major Turkish petrochemical producer Petkim on its list of expected stock market underperformers citing an unfavourable 2013 outlook for the company, the bank said on Monday.

Petkim could only expect a sustainable recovery of margins from 2014 because its difficulties with high input costs and lower demand would not be resolved next year, Erste said.

“Generally we are pessimistic on the outlook for petrochemical producers using naphtha as their feedstock,” it added, maintaining a ‘Sell’ rating on Petkim’s shares.

However, Erste said there was a chance that Petkim’s third-quarter financial results could show a temporary recovery in margins.

The worsening outlook for Petkim meant the company replaced Poland-based oil and petrochemical group Grupa Lotos on the list of expected underperformers.

Grupa Lotos was, nevertheless, still facing a negative outlook, largely due to a sharp drop in refinery margins, Erste said.

Petkim is owned by the State Oil Company of the Azerbaijan Republic (SOCAR), which is building a Petkim petrochemical ‘supersite’, complete with its own port, at a cost of $10bn (€7.8bn).

($1 = €0.78)

By: Will Conroy
+44 20 8652 3214

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