PetGas earnings to stay resilient

KUALA LUMPUR: Petronas Gas Bhd's earning resiliency will continue over the next two years until the Regulatory Period 1 ends in 2022, says Kenanga Research.

The research house said the group's FY20 results met its expectations with core profit rising 6% to RM2bil, which was 1% below its and consensus estimates.

It's total net dividend per share (NDPS) of 27 sen, which brought full year NDPS to RM1.27 per share versus 82 sen in 2019 beats its forecast of RM1.22 per share.

"In the past one year (FY20), PETGAS has shown its earnings resiliency by not affected by the pandemic as the IBR framework safeguarded its earnings for 2020-2022 under the RP1.

"As such, earnings for GT, GP and RGT are fairly predictable while Utilities is dependent on operational efficiency," said Kenanga.

It added that earnings certainty is high despite limited earnings growth prospects.

Kenanga launched its new FY22 estimates with 1% earnings growth with NDPS for FY21-22 based on 85% earnings payout ratio.

It maintained "market perform" on the stock with a higher sum-of-parts-driven target price of RM16.97 from RM16.85 as it rolled over its valuation base to FY21.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Next In Business News

CPO futures tracks weakness in soybean oil
Pestech secures RM64.9m contract for RTS Link
Mohamed Sharil steps down as Privasia chairman
Ringgit ends lower vs dollar amid surge in Covid cases
KLCI closes shade higher but broader market weak
Ryanair posts record loss, expects to break even this year
Hong Leong Bank extends assistance relief plans
Thailand cuts GDP outlook
Taiwan shares slide 3% as fresh Covid-19 outbreaks stoke recovery concerns
Bursa weakens as over 1,000 stocks in the red

Stories You'll Enjoy