Petrochem has reported a net loss of US$2.7mn higher than the estimated US$0.9mn in Q1 2011, according to the latest report by the Saudi bank, NCB Capital (NCBC).
Petrochem is currently in pre-operational stage and expects to start generating operating revenues in Q2 2012.
• Q2 2011 net loss of US$2.7mn
Petrochem's Q1 2011 net loss came in at US$2.7mn compared to its expectation of a US$0.9mn loss. The Q2 2011 net loss was much better than the Q2 2010 net loss of US$11.4mn. However, QoQ performance was weak as Petrochem's Q4 2010 performance benefited from an income of US$11.2mn; related to re-adjustment of the zakat base calculation.
• Operating loss higher than estimated
Petrochem's Q1 2011 operating loss came in at US$1.1mn, worse than its estimated US$0.9mn and the Q1 2010 operating loss of US$0.8mn.
• Plant status
Petrochem expects to complete construction of its petrochemical complex by the end of 2011. It believes commercial operations will start after another 6-9 months and, therefore, expects to start reporting operating revenues in Q2 2012.
• Petrochem remains Neutral on the stock with a price target of US$4.5mn.
The company awaits detailed results before updating its estimates.
