Kem One - comment

Kem One held its Q4 and FY24 call yesterday, but it was very much backward-focused and would only answer questions about FY24's performance. Management reiterated it was too early to comment on FY25 projections, except that liquidity is currently aligned with the business plan. There is no signal from the market of any recovery in demand or pricing. Management acknowledged that the current agreement with Ineos expires in December, and the ethylene storage facility will be underutilised until that agreement ends. 

We remain doubtful that the business has sufficient liquidity without some recovery in the end markets.