PETRONAS GAS BHD

KLSE (MYR): PETGAS (6033)

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Last Price

18.14

Today's Change

+0.04 (0.22%)

Day's Change

18.10 - 18.20

Trading Volume

334,400


2 people like this.

1,414 comment(s). Last comment by Mohd ImranRafifi 15 hours ago

lotuseater

149 posts

Posted by lotuseater > 2021-07-05 17:21 | Report Abuse

Read and understand their business. It’s so easy to be an armchair critic and make irresponsible statements.

Posted by Banana John > 2021-07-05 17:41 | Report Abuse

yup. someone need to shake out the weak investors and buy in cheaper.

stingray_ea

2,765 posts

Posted by stingray_ea > 2021-07-06 09:43 | Report Abuse

US Oil hit new high 76.63 usd ... hope petgas can go further down.

remember buy cheap and deep high dividend yield petgas to hedge inflation

stingray_ea

2,765 posts

Posted by stingray_ea > 2021-07-06 15:02 | Report Abuse

US OIL hit new high 76.77 usd . so far so good

stingray_ea

2,765 posts

Posted by stingray_ea > 2021-07-06 16:24 | Report Abuse

76.95 usd

Posted by unicornbird > 2021-07-10 15:57 | Report Abuse

obs, Petgas has added a new service

LNG Bunkering Vessel (LBV) service, which allows for ship-to-ship LNG transfer to the LBV as well as LNG break-bulking and reloading for smaller LNG vessels.

https://www.thestar.com.my/business/business-news/2020/11/20/sterling-results-by-petronas-gas

Posted by unicornbird > 2021-07-10 15:59 | Report Abuse

Do you have any idea on this?
I think this will be extremely profitable, because Petgas can do tranship for Qatar gas to China ships.
I guess this big fat pie was originally owned by singapore. but now China allow malaysia to share the pie.

observatory

1,017 posts

Posted by observatory > 2021-07-11 21:56 | Report Abuse

I'm not familiar with the LNG bunkering service. Do you have any source that indicates the need and market size for such services by third party vessels?

The Annual Report has listed LNG bunkering as one of the several ancillary services offered by Petgas. In 2020 the total revenue from ancillary services was RM3.4 million as compared to group revenue of RM5.6 billion.

Posted by unicornbird > 2021-07-12 09:30 | Report Abuse

obs, it's estimated to be RM 2billion. let's see if Petgas get any share from these, in the upcoming quarters
https://www.devdiscourse.com/article/headlines/1302844-malaysia-starts-lng-bunkering-operations-makes-first-delivery

Posted by unicornbird > 2021-07-12 09:32 | Report Abuse

the trade war between US & China should benefit Petgas, because China will need to buy via a US friendly agent. Petronas should get the deal, and the market size is huge.

observatory

1,017 posts

Posted by observatory > 2021-07-12 12:42 | Report Abuse

@unicorn,

I searched in 2020 Annual Report. It states that "Launch of LNG Reloading service at RGTSU for PETRONAS LNG bunkering services, the first in Southeast Asia". Basically, PetGas regasification terminal at Sungai Udang works like a gas station for ships. It sells Petronas LNG to LNG-powered vessels, quite similar to PetDag stations selling to LNG-powered taxis.

I've googled to learn more about LNG bunkering. This article explains how bunkering is performed.
Source: https://www.klawlng.com/lng-applications/lng-vessel-bunkering/

LNG-powered vessels become popular because ports have banned/ imposed surcharges on vessels using high sulfur marine fuels in their effort to control air pollution. The second driver is climate change.
Source: https://www.bbc.com/news/uk-scotland-51114275

I don’t think LNG bunkering involves the Sino-American geopolitics.

Posted by unicornbird > 2021-07-12 18:00 | Report Abuse

you're right. the bunkering is not transshipment. So Petgas only pump fuel for the ships
the market will grow in 10X by 2027. The Sino US clash will result in more China ships choosing to bunker with Petgas, as China try to build up it's own non-US supply chain.

If Petgas really dominate the LNG bunkering market in Straits of melaka, then it's a huge deal. 30% of ships in the world pass through the strait.

https://www.alliedmarketresearch.com/lng-bunkering-market
Global LNG bunkering market size was valued at $0.38 billion in 2019, and is projected to reach $5.14 billion by 2027, growing at a CAGR of 45.2% from 2020 to 2027. LNG bunkering is the process of transferring LNG to a ship for its own consumption. The advantages of using LNG as a marine fuel in the shipping industry include less shipping emissions, lower operating & shipment costs, safety, non-toxic, and others. Stringent environmental regulation toward pollution caused by ship transportation is expected to be the primary growth factor in the LNG bunkering market

Posted by unicornbird > 2021-07-12 19:26 | Report Abuse

Petgas may partner Dialog, and use Pengerang for transhipment
https://www.hydrocarbonengineering.com/gas-processing/26112014/malaysia-boosting-domestic-gas-1691/

LNG trans-shipment: This is a highly likely option. While PLNG-2 is only providing regasification services for now, Petronas Gas stated that the joint venture could also offer such services to ‘other potential third party customers’.

observatory

1,017 posts

Posted by observatory > 2021-07-12 20:02 | Report Abuse

Good info.

Globally there were 118 and 143 LNG-powered vessels in 2017 and 2018. Currently this is still a very small market.

Source: https://www.maritime-executive.com/editorials/2019-will-be-the-year-of-acceleration-for-lng-as-marine-fuel

According to the 2020 Annual Report, the LNG bunkering asset has a book value of only RM31 million. The first LNG bunkering only took place as recent as in Oct 2020. We can keep an eye on how fast the business grows in 2021. I would expect more capex spending if this business can really gain traction.

We can also make some guesstimate on the future market potential based on the articles you've shared. Your article forecasts the global LNG bunkering market to reach ~USD5 billion or RM20 billion by 2027. Your other earlier article says MIDA expects Malaysian market size to reach RM2 billion (no timeline given).

Let’s assume the RM2 billion market is completely captured by PetGas. Revenue wise it's sizeable given 2020 revenue was only RM5.6 billion. However this could be a low margin business. If LNG bunkering is like a gas station business as operated by Petronas Dagangan, the net margin is only 2%, or about RM40 million net profit out of RM 2billion revenue. At this scale the net profit will be rather insignificant as compared with 2020 net profit of about RM2 billion.

Actually there are other ancillary services mentioned in the Annual Report, such as the LNG Truck Loading and Gassing Up Cooling Down (GUCD) services. However no indication has been given on how large these non-regulated business could grow to in the future.

observatory

1,017 posts

Posted by observatory > 2021-07-12 20:05 | Report Abuse

Based on my limited understanding, the LNG trans-shipment business refers to the GUCD services. The facilities are available in Sungai Udang and Pengerang.

Posted by unicornbird > 2021-07-13 08:09 | Report Abuse

Bunker = RM 6 b (i made a mistake earlier)
Bunker Net profit = 2% X 6b = 120m
Impact on Petgas Net profit = 120m/2b = 6% (not much)

Let's observe if transhipment can do well. Probably that's better because the volume is much higher

Posted by kpowersohai > 2021-07-19 11:15 | Report Abuse

fly soon......fund manager accumulating...

Posted by Banana John > 2021-07-22 20:46 | Report Abuse

flying to south...

Posted by Banana John > 2021-07-24 05:45 | Report Abuse

below 15 soon.... yeah

Posted by lionel messi > 2021-07-24 10:04 | Report Abuse

I hope so too but fat hopes.

Bgt 9963

7,445 posts

Posted by Bgt 9963 > 2021-07-24 10:20 |

Post removed.Why?

nnara2401

31 posts

Posted by nnara2401 > 2021-07-30 17:30 | Report Abuse

i wish i had some money to buy now

Posted by kpowersohai > 2021-07-30 18:32 | Report Abuse

whoever not yet having this stock in your portfolio or not have enough units yet. go to yr calendar and mark 2 august, then topup your brokerage account. once hit 9am this coming 2 August just place order and get whatever amount units u afford to buy.

Posted by Banana John > 2021-07-30 19:14 | Report Abuse

As mention before
will break 15.

Bgt 9963

7,445 posts

Posted by Bgt 9963 > 2021-07-31 09:10 |

Post removed.Why?

Posted by lionel messi > 2021-08-01 09:30 | Report Abuse

I hope so. The cheaper the better. Solid blue chip.

Bgt 9963

7,445 posts

Posted by Bgt 9963 > 2021-08-01 10:20 |

Post removed.Why?

James Ng

2,678 posts

Posted by James Ng > 2021-08-01 19:28 | Report Abuse

https://klse.i3investor.com/blogs/general/2021-08-01-story-h1568906147.jsp
[转贴] [Video:浅谈PETRONAS GAS BHD, PETGAS, 6033] - James的股票投资James Share Investing

Posted by kpowersohai > 2021-08-03 20:41 | Report Abuse

seriously undervalued company.....cincai2 also can at the very least worth rm16 per share. buy when the price dropped....whoever listen to my advice a few days ago now can sleep happily ady.

Bgt 9963

7,445 posts

Posted by Bgt 9963 > 2021-08-03 21:22 |

Post removed.Why?

Posted by kpowersohai > 2021-08-04 16:15 | Report Abuse

HOLD TIGHT TIGHT....GODD NEWS COMING SOON IN GOOD QR REPORT.......BUY WHILE STILL BELOW RM16

Bgt 9963

7,445 posts

Posted by Bgt 9963 > 2021-08-04 17:02 |

Post removed.Why?

Posted by traintobullland > 2021-08-04 23:43 | Report Abuse

Dividend announcement should be very soon hehe

Bgt 9963

7,445 posts

Posted by Bgt 9963 > 2021-08-11 08:55 |

Post removed.Why?

DickyMe

14,321 posts

Posted by DickyMe > 2021-08-16 10:23 | Report Abuse

Dzulkefly bin Ahmad for Prime Minister.

Keyman188

5,968 posts

Posted by Keyman188 > 2021-08-16 10:27 | Report Abuse

Blow water never wipe mouth...

Old man always saying...human behavior very very hard to change...


wkwkwk...kekeke...hehehe...

Posted by thetruthstory > 2021-09-06 12:10 | Report Abuse

today last day to accumulate for dividens

Posted by Banana John > 2021-09-06 20:58 | Report Abuse

today volume sipek high. seems someone throwing out the share before dividend.

Posted by kpowersohai > 2021-09-07 11:49 | Report Abuse

Buy low, sell high. Drop lower, buy more! Thats the game plan for counter like petgas.

Posted by Banana John > 2021-09-08 19:42 | Report Abuse

what happen last minutes shoot so-hai.... something wrong

patrico8

334 posts

Posted by patrico8 > 2021-09-08 19:46 | Report Abuse

Manipulation

Posted by Banana John > 2021-09-17 20:40 | Report Abuse

another manipulation today... last minute shoot so-hai.
I guess the idea behind is to make klci not so ugly... last 15 minutes transaction around 900k unit and cost around 16m. does it worth to push the index?

Posted by Banana John > 2021-09-20 16:34 | Report Abuse

hehe... drop to previous level. still got another 15m to push the price?

Posted by kpowersohai > 2021-09-22 19:08 | Report Abuse

happy with this counter, the best purchase for this year. stock price increases and at the same time collect dividen (passive income). best example of passive income done at the right time.

masterus

3,529 posts

Posted by masterus > 2021-10-09 23:06 | Report Abuse

S. crude oil price tops $80 a barrel, the highest since 2014
PUBLISHED FRI, OCT 8 2021 10:12 AM EDT
UPDATED FRI, OCT 8 2021 8:42 PM EDT
Pippa Stevens
@PIPPASTEVENS13
SHARE
KEY POINTS
West Texas Intermediate crude futures topped $80 on Friday for the first time since 2014.
Oil is up more than 60% for 2021 as demand rebounds while supply remains tight.
The Department of Energy said Thursday it has no immediate plans to take action to alleviate the price surge.

observatory

1,017 posts

Posted by observatory > 2021-10-10 15:21 | Report Abuse

From yesterday Star

https://www.thestar.com.my/business/business-news/2021/10/09/petgas-to-gain-from-power-sector-transformation

Key takeaways:
1. Revenue and earnings are stable despite spike in global gas price. This is because gas tariffs are regulated and the long term gas processing agreement with Petronas.
2. Despite decarbonization and phasing out of coal, surge in gas demand is only likely after 2030
3. Limited growth as most gas processing and regassification facilities have already been taken up by Petronas.
4. While more demand may come from third-party access agreement as part of Malaysian gas market liberalization, the pace may be slowed down by hike in global spot price.
5. Annual CapEx of ~ RM1 billion in the next 3 years
6. Look into future opportunity like hydrogen and setting up CoGen power plants in industrial parks.

Alan Teh

48 posts

Posted by Alan Teh > 2021-10-19 17:48 | Report Abuse

With the current price right now should I invest on this stock?

masterus

3,529 posts

Posted by masterus > 2021-10-20 12:18 | Report Abuse

Forget $100, Options Traders Now Betting On Oil Prices Hitting $200
Speculative traders are betting on the options market that oil could exceed $100 a barrel by the end of this year and even reach a record $200 per barrel by the end of 2022

observatory

1,017 posts

Posted by observatory > 2021-10-20 21:43 | Report Abuse

It’s important to note that Petronas Gas is predominantly a utility company, not an oil & gas company. Don’t be deceived by the name “Gas”. The CEO already explains in The Star article I shared that its revenue and profits will not be much affected by gas price volatility.

In the research reports I read most analysts use the Sum of the Parts (SOP) valuation method – valuing different businesses independently and sum up the value.

I will do a sanity check on PetGas fair value based on a simpler approach. The starting point is I believe the current share price is not grossly over or undervalued. For a large cap company like PetGas, which is followed by many analysts and owned by many institutions, any major gap between price and value cannot persist for long. Opportunities will be identified and exploited, and share price corrected.

Based on current market price, I shall work backward to understand what are the assumptions behind. If the assumptions make sense, then the current market price will also make sense.

observatory

1,017 posts

Posted by observatory > 2021-10-20 21:50 | Report Abuse

The characteristics of PetGas are earning growth is slow but stable. It distributes most of its earnings as dividends with quarterly distributions. This means the simple Gordon Growth Model can be used.
https://www.investopedia.com/terms/g/gordongrowthmodel.asp

Past dividend records show that
1) From FY2007 to FY2010, DPS was RM0.50.
2) In FY2015, DPS was RM0.60
3) In FY2020 (latest full financial year), DPS was RM0.72 (excluding special dividends)

Using a CAGR calculator, its shows that dividend CAGR over the past 10 years is 3.7%, and over last 5 years is also 3.7%. The dividend has been growing at a nominal rate of about 3.7%. For context, in the 2010’s decade Malaysia GDP grew at about 4% to 5% in real term, or about 6% to 7% in nominal term.

Malaysia GDP growth rate will slow gradually in coming years (in Sep World Bank projected 5.8% in 2022 and 4.5% in 2023, in real term). So I shall make a bold assumption that PetGas future dividend growth rate is at a constant 3%.

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