MIDF Sector Research

Petronas Gas Berhad - New RP1 Tariffs Better Than Expected

sectoranalyst
Publish date: Mon, 23 Dec 2019, 11:02 AM

KEY INVESTMENT HIGHLIGHTS

  • Regulatory Period 1 tariffs came in better than anticipated
  • Tariff for PGU was raised to RM1.129/GJ from RM1.072/GJ currently
  • RGTSU tariff reduced slightly however; tariff for RGTP raised to RM3.485/GJ
  • New tariffs expected to lift earnings for PGB during RP1
  • FY20-21F earnings revised upwards by +8.4% and +9.3%
  • Maintain NEUTRAL with revised TP of RM17.62 per share

 

New tariff announced for Regulatory Period 1. Petronas Gas Berhad’s (PGB) announced that it has received a letter via the Energy Commission (EC) dated 19th December 2019 from the Government. The letter stated the approval of a new set of tariffs for the Regulatory Period 1 (RP1) for PGB facilities which includes tariffs for: (i) Peninsular Gas Utilisation (PGU); (ii) Regasification Terminal Sungai Udang (RGTSU) and; (iii) Regasification Terminal Pengerang, Johor (RGTP). The new tariffs for RP1 will commence from 1st January 2020 and will last until 31st December 2022. The details of the new tariffs are as follows:

Source: MIDF Research - 23 Dec 2019

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