Blue Chip Stock

Petronas Gas Bhd can get back on strong sales volume from utilities segment and rise in crude oil prices.

Petronas Gas Bhd is the 12th most profitable company and the most profitable company in Asia and one of the top performing company in Bursa Malaysia.

Mid 2018 was tough for oil and gas company due to fluctuation and high volatility of crude oil price. But due to the recent rise in crude oil price, there seems a good future for oil and gas company in the coming future.

The Multi Management future solutions have chosen Petronas Gas Bhd for investment in Bursa Malaysia for the Malaysian investors who are interested in the energy sector.

Before investing in Petronas you need to know its fundamental and technical review.

About PETRONAS GAS BHD (KLSE: PETGAS 6033)

PETRONAS Gas Bhd is a Malaysian oil and gas company. Petronas is standing for Petroliam Nasional Berhad, it is a national petroleum company. It is wholly owned by the government of Malaysia. PETRONAS Gas Berhad was incorporated as a private limited company on 23 May 1983, under the Companies Act, 1965 of Malaysia, and was converted to a public limited liability company on 28 March 1995 listed in Bursa Malaysia on 4 September 1995.

At present, it has grip in 35 countries. It works in upstream exploration and production of oil and gas, downstream oil and gas refining, marketing and distribution of petroleum product, shipping and automotive engineering. It is also involved in property investment.

It has ranked in Fortune Global 500 among largest corporation. In 2013 it has come in 75th rank.

Latest News:

The Company has entered into the second term of the Gas Processing Agreement (GPA) with PETRONAS, which will continue till Dec 31, 2023.

The 8% increase in fixed reservation charge and better terms in performance-based structure (PBS) could raise the gas processing division’s revenue. 

For 2019, the tariff for the GPU is RM1.072 per gigajoule, down from RM1.248 per gigajoule this year, while the tariff for RGTSU is RM3.518 per mln British thermal unit (mmBtu) and RGTP is US$0.637 per mm BTU. (Source Edge Daily).

Fundamental Overview Of PETRONAS GAS BHD
 

1.  Revenue for the nine months period ended 30 September 2018 stood at RM4, 110.9 million, an increase of 3% compared to the corresponding period mainly contributed by the Group’s new LNG regasification terminal in Pengerang.

2. Profit for the period was RM1, 565.8 million, rose by 19.8% or 3 million in tandem with higher PBT and lower effective tax rate due to tax incentives granted to the Group.

3. The Board of Directors has approved a third interim dividend of 18 sen per ordinary share amounting to 2 million in respect of the financial year ending 31 December 2018.

Fundamental Data PETRONAS GAS BHD:

Market Capitalization (RM)(M) 35260
No. of Shares(M) 1979
Earning Per Share (MYR) 0.96
Dividend(cent) 0.18
Dividend Yield(%) 3.56
Trailing PE 19.61
52 Week price Range(RM) 16.56-20

Key Highlights:

1.  The company reported interim DPS of 18sen was declared, bringing total DPS for 9M18 declared to 50sen – a 66% payout.

2. 3Q18 core earnings eased 2% QoQ but surged 22% YoY while 9M18 rose 16% to come in ahead of ours and consensus’ estimates at 78%.

Technical Overview Of PETRONAS GAS BHD
 

PETRONAS Gas Bhd

On weekly charts stock trending in the rising channel with a slope of the channel not as steep, Upper end of channel forms by joining swing highs of price action recent resistance comes at 20 and lower support comes at the level of 17.

In recent week price breaks below the lower support line and closing basis, it confirms the break of this major support line. This can lead price to test support of 17 but momentum need to pick up to confirm this and continuous trade below 17.50. Price bounce back from this support earlier two times rose to 19.20.

65-week simple moving average offers support for multiple times as price took to support and move higher visible on the chart.

If price manages to hold above 18 can lead price higher. 

Stocks major support and resistance level were as below:

Symbol S3 S2 S1 Pivot R1 R2 R3
PETGAS BHD 17.59 17.99 18.23 18.63 19.03 19.27 19.67

The MMF Takeaways:

Currently trading at MYR 18.760 which is 2.74% increase in the price as in 10th January. Petronas is a highly reputed company in Bursa Malaysia. After doing its technical analysis and considering news related to the energy sector we recommend you to invest in Petronas Gas Bhd. But we also recommend you to use your research and analysis before taking a step.

We provide updated market news and Malaysian positional stock picks on a daily basis. Subscribe to our 3-days free trial for expert advises on KLSE investment. Contact us now- MMF Solutions

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