PETALING JAYA: Anticipated declines in PETRONAS GAS BHD
’s (PetGas) gas transportation revenues will result in an earnings reduction of 3% in fiscal 2020 (FY20) and subsequently 8% in FY23, said AmInvestment Bank Research.
The research house retained its “hold” call on the counter with unchanged forecasts and a sum-of-parts-based (SOP) fair value of RM15.35 per share, implying an FY19 price earnings ratio of 16x.
The brokerage said its forecasts had already incorporated declines in PetGas’ gas transportation revenues by 5.6% in FY20 and 18% in FY23 due to the Energy Commission’s (EC) gas transportation guidelines for the pilot programme and the two three-year regulatory periods of FY20–FY25.
“Overall, this translates to a minimal PetGas annual earnings reduction of 3% in FY20 while FY23 earnings will drop by a larger quantum of 8%,” it said in a report.
...