Chemanol’s Q2 net loss ‘a big miss’, says Saudi Fransi Capital

Methanol Chemicals Co.’s (Chemanol) second-quarter net loss (SAR 21.41 million) was “a big miss” from Saudi Fransi Capital’s estimate of an SAR 8 million net profit and consensus forecast of a SAR 3 million net profit, the brokerage firm said in a report.

The report attributed losses during the period to discounted product prices and increased competition in key markets such as the GCC, India, China and East Asia. 

The investment arm of Banque Saudi Fransi maintained a “hold” rating on the stock and left its price target unchanged at SAR 13.50.

Growth potential is expected to be limited in the short-term as methanol prices will likely remain low.