Stock Name: PETGAS
Company Name: PETRONAS GAS BHD
Company Name: PETRONAS GAS BHD
| Research House: CIMB | Price Call: BUY | Target Price: 18.49 |
Target RM18.49
Though The Edge Weekly's revelation that Petronas has not secured an offtaker for imported gas through the Sungai Udang regas terminal is a concern, PetGas's management has indicated that it is unlikely to be penalised as it is about to sign a take-or-pay agreement with Petronas. This news is a surprise as Petronas has signed agreements for the supply of feedstock for c.100% of the regas terminal.s capacity. It does not affect our Outperform call or SOP-based target price as PetGas bears no procurement or supply risk as it is paid to process and transport gas.
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