Stock Name: TENAGA
Company Name: TENAGA NASIONAL BHD
Tenaga Nasional Bhd's shares have been downgraded to "hold" with a new target price of RM5.41, reflecting heightened risk following the prolonged gas curtailment issue, ECMLibra Investment Research said today.
The research house said it viewed negatively a news report on Tenaga buying 105,000 tonnes of fuel for October delivery and expected to continue purchasing steady volumes until next year.
"This is definitely negative as it could signal that the much-awaited recovery of gas from Bekok C field has been delayed yet again," said ECMLibra.
Tenaga had estimated that for every 100 mmscfd of gas shortage that is met by burning oil and distillates, which is six times more expensive, the negative impact to the bottom line is about RM7 million to RM7.5 million a day.
TNB chief executive officer Datuk Seri Che Khalib Mohd Noh was quoted in the media as saying TNB was incurring an additional RM400 million a month in fuel costs to replace the gas shortfall.
On a separate issue, the utility giant has realised its 11-month electricity sales figures, which showed a year-on-year unit demand growth of three per cent.
"This is within our full-year estimate of 2.2 per cent. August's demand is expected to be weak due to the Hari Raya festive season. -- Bernama
Company Name: TENAGA NASIONAL BHD
| Research House: ECMLIBRA | Price Call: HOLD | Target Price: 5.41 |
Tenaga Nasional Bhd's shares have been downgraded to "hold" with a new target price of RM5.41, reflecting heightened risk following the prolonged gas curtailment issue, ECMLibra Investment Research said today.
The research house said it viewed negatively a news report on Tenaga buying 105,000 tonnes of fuel for October delivery and expected to continue purchasing steady volumes until next year.
"This is definitely negative as it could signal that the much-awaited recovery of gas from Bekok C field has been delayed yet again," said ECMLibra.
Tenaga had estimated that for every 100 mmscfd of gas shortage that is met by burning oil and distillates, which is six times more expensive, the negative impact to the bottom line is about RM7 million to RM7.5 million a day.
TNB chief executive officer Datuk Seri Che Khalib Mohd Noh was quoted in the media as saying TNB was incurring an additional RM400 million a month in fuel costs to replace the gas shortfall.
On a separate issue, the utility giant has realised its 11-month electricity sales figures, which showed a year-on-year unit demand growth of three per cent.
"This is within our full-year estimate of 2.2 per cent. August's demand is expected to be weak due to the Hari Raya festive season. -- Bernama
No comments:
Post a Comment