Petrochem Q2 earnings came in below estimates: Aljazira Capital

National Petrochemical Co.’s (Petrochem) net income of SAR 288 million posted in the second quarter 2018 came below Aljazira Capital’s estimate, as well as other forecasts, of SAR 347.4 million and SAR 304 million, respectively.

“We believe that the production efficiency and operating rate has been positively reflected on the top line. Stronger than expected capacity utilization and products’ healthy global demand could drive the top line in H2 2018,” Aljazira Capital said.

The research firm said it expects Petrochem to post SAR 1.21 billion in net profit for fiscal year 2018 and raise its dividend payment to SAR 0.75 per share.

Aljazira Capital maintained its neutral recommendation on Petrochem’s stock, with target price at SAR 31.5 per share.