April 20, 2024
Stocks & Bonds
[EQUITIES] ‘GS Caltex’s new investment may burden industry’
[THE INVESTOR]
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The oil and petrochemical industry will gain from improving margins since the oil price drop in 2014 and “overweight” recommendation still hold but aggressive investment in the industry should be refrained, cautioned analyst Son Yeong-ju.
GS Caltex’s two-year expansion plan showed that the weak oil prices not only has improved margins but also could result in facilities expansion in pursuit of more profits, noted the analyst. As oil developers might expand their business too, value of the industry as a whole would have less room to rise, she added.
By Hwang You-mee (glamazon@heraldcorp.com)
