PETGAS (6033) - Stock Market Buzz

PUTRAJAYA (Dec 23): The government has decided to reduce tariff for gas facility charges for the regasification terminal owned by Pengerang LNG (Two) Sdn Bhd and gas distribution pipeline owned by Petronas Gas Bhd between Jan 1, 2023 and Dec 31, 2023, the first year under the Second Regulatory Period (RP2).

2022-12-24 09:33

jianwei90

is this reduction in tariff good or bad for petgas? Thanks :)

2022-12-24 22:02

Mohamad Jeffrey Ismail

Should be bad as RR mentioned that industries and users will save millions from this reduction.

2022-12-25 15:23

AxeCap

RP2 should be good for Petronas, however if you take forex impact and gas price into consideration, it's not really lucrative to invest in Petgas right now. For a risk-averse investor however, Petgas should be a good defensive stocks as dividend yield is still high, though lower than its peers. Special dividend might come up in March, as they are increasing its gearing level.

2023-01-10 10:40

unicornbird

Anyone knows how much is the reduction?
If reduce 3%, but volume is up 10%, Petgas still earn more

2023-01-18 20:41

tedoptimus

用数据预测 PETGAS2022Dec 的业绩
https://youtu.be/x1CMXAxqTaE

2023-02-03 21:28

unicornbird

AxeCap any idea why PetGas want to increase gearing? there's no point for them to take up so much debt
as they are a low capex business

2023-02-22 18:27

saqader

Anyone knows what was the IPO price for this counter?

2023-02-25 06:15

observatory

Like typical utilities, PetGas business is capital intensive. It's annual capex in recent year is about RM1.2 billion. In the latest quarter, capital commitment is RM5 billion.

In PetGas regulated business (transportation and regassification), Energy Commission calculates the allowed return based on certain assumed weighted average cost of capital (WACC). The figure is not disclosed. But it's probably close to Tenaga's WACC of 7.3% under RP3.

Let's assume cost of debt (CoD) is 5%, and cost of equity (COE) is 9%. Let's further assume PetGas increases net debt to equity ratio to 50%. Its WACC will be (0.5*5% + 1.0*9%) / (0.5 + 1.0) = 7.7%.

With a net debt to equity ratio of 50%, PetGas can still comfortably run its business and earn the same return as today because its operating cash flow is very stable. PetGas can then return its the excess cash (made available through increased borrowings) to shareholders. Shareholders can invest the extra cash elsewhere to earn more return.

But PetGas has chosen to remain in net cash position. It runs its business based entirely on the more expensive shareholder's capital (9% in our example), wherease the EC only allows it to earn returns based on lower rate (about 7+%).

Obviously PetGas management plays it very safe. But it means shareholders earn subpar return.

2023-02-25 18:01

Anyone received the recent dividend already?

2023-03-21 10:43

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

Why the sudden drop last Friday? Can't seem to find any corporate news about it

2023-03-27 09:21

Security LastPr PE DY% Divcts ROE ttm-marg
PETGAS (Gas, Water & Multi-utilities) 16.5 19.84 4.4 72 12.51 26.7

2023-03-30 16:48

haziqaz

Bagaimana CEO Petronas boleh beri projek RM399 juta kepada syarikat terkait rasuah antarabangsa?
https://thecorporatesecret.com/blog/2023/05/07/bagaimana-ceo-petronas-boleh-beri-projek-rm366-juta-kepada-syarikat-terkait-rasuah-antarabangsa/

2023-05-08 08:36

curiousmonke

Anyone heard what the door gift is for this agm?

2023-05-11 12:20

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

By definition, this company is a slow grower in Lynch classification of businesses. You get a DY of about 4% and very gradual slow capital appreciation in its share price.

2023-05-12 22:14

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

A positive Q12023

2023-05-23 10:20

unicornbird

obs do you think Petgas is worth keeping? the growth looks very poor compared to Allianz

2023-07-18 19:09

success2628

Post removed.Why?

2023-07-25 16:24

Attaaaaaack

Hi all, don't miss purchasing your tickets at GAS MALAYSIA ( 5209 ), QUARTERLY PROFIT & DIVIDEND PAYOUT has just been announced😎........... This week might SURGE HIGH💪

2023-08-21 20:36

haziqaz

Petronas bakal dimalukan berbilion ringgit?
https://thecorporate-secrets.com/blog/2023/08/23/petronas-bakal-dimalukan-berbilion-ringgit/

2023-08-24 00:09

Latest quarterly results continue to be good. ROE 13%.
A good company in one's portfolio, hardly have to be monitored.
DY is in the 4% range.
Has this stock since its listing on Bursa.

2023-08-25 17:46

Brutus

Good set of results. Thank you for the dividend and looking forward to Q4 bumper dividend.

2023-08-25 20:09

maxwin69

Oil price keep climbing, causing inflation all over the world. Luckily for Malaysia we have Petronas pumping lots of oil for us. I have been keeping this stock for more than 10 years. Good dividends. Today brent oil is above $90. Way to go...

2023-09-11 11:02

Petronas Gas Bhd's (PetGas) net profit rose 10 per cent to RM468.46 million in the third quarter ended Sept 30, 2023 (3Q23) from RM425.82 million a year ago, on the back of lower tax expenses.

https://www.nst.com.my/business/corporate/2023/11/980387/petronas-gas-net-profit-10pc-lower-tax-expense

2023-12-03 15:58

on the way to RM17 again despite EPF disposed 🤗

2023-12-13 17:27

Dehcomic01

The top 3 countries in terms of population are China, India and USA. But when it comes to the stock market performance, the number of people doesn’t count.
From the end of 2010 to 2023, the CAGR for their stock market indices were
• S&P 500 (US) – 10.8 %
• Nifty 50 (India) – 10.2 %
• SSE (China) – 0.4 %
• KLCI (Malaysia) – negative 0.3 %

You can see that the US stock market had one of the better growth rates. The common cited reasons for this are because it has better
• Global market intergration
• Liquidity
• Political Stability and Regulatory Environment
• Market Maturity and Investor Sophistication.
• Financial Infrastructure

Moral of the story? If you are a fundamental investor and you want the market to re-rate your stocks faster, shouldn’t you focus on stock in those countries with better track record of returns.
So why look at Petronas when you have the likes of Shell, ExxonMobil, BP? https://www.youtube.com/watch?v=YrMdgjFHHaU

2024-01-02 09:24

Market cap of Petronas is higher than those companies, so worth to keep it for long-term

2024-02-09 11:12

KingKKK

UTILITIES Sector (KingKKK): Fueling the Nation: Identifying the Top Performers in the Malaysian

https://klse.i3investor.com/web/blog/detail/bestStocks/2024-02-16-story-h-188417037-UTILITIES_Sector_KingKKK_Fueling_the_Nation_Identifying_the_Top_Perform

2024-02-16 16:43

Michael Kwok

Buy meridian 9-11 cents
Each people rm 10k.if got money buy some more.
27/2/24 1.06am

2024-02-27 01:06

Its Q4 result is quite impressive. Overall, its FY2023 surpasses FY2022

2024-02-27 23:33

KingKKK

UTILITIES Sector (KingKKK): Investing in Malaysia's Engine Top Performer - YTLPOWR, YTL, RANHILL, PBA, TENAGA, PETGAS, MALAKOF, ENGTEX

https://klse.i3investor.com/web/blog/detail/bestStocks/2024-03-17-story-h-186391184-UTILITIES_Sector_KingKKK_Investing_in_Malaysia_s_Engine_Top_Performer_Y

2024-03-17 16:03

Shooting back up to Rm18. Demand for gas is going up !

2024-04-18 07:23

Kinder Morgan Sees Strong Natural Gas Demand Over the Next Six Years
https://oilprice.com/Latest-Energy-News/World-News/Kinder-Morgan-Sees-Strong-Natural-Gas-Demand-Over-the-Next-Six-Years.html

2024-04-22 15:03

RM18.10 now 😚

2024-05-03 18:08

Interesting analysis of Petronas Gas Bhd's Dividend
https://finance.yahoo.com/news/petronas-gas-bhds-dividend-analysis-110435948.html

2024-06-14 15:57

Interesting analysis of Petronas Gas Bhd's Dividend
https://finance.yahoo.com/news/petronas-gas-bhds-dividend-analysis-110435948.html

2024-06-14 15:57

bullrun168

Walaoeh, what happend ?
Super damn hot man Petgas today !
Now Petgas was traded at @RM18.34 (+0.18) (+0.99 %)
Heng ah, Ong ah, Huat ah !

2024-08-28 11:42

Lai Peng Chin

EPF keeps suppressing the price because they wanted to buy cheap.

2 months ago

Pls 🙏 increase RON95 to RM9.50 😁. Thank you.

2 months ago

Foreigner drive Alphard, Mercedes, Porsche ,said car and petrol very very very super super super CHEAP!!!

2 months ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

RON97. Pls increase to RM9.7

2 months ago

Total Return: Combining price appreciation with dividend payouts, the total return per share for an investor from 1994 to 2024 is substantial. Assuming reinvestment of dividends, the compounded annual growth rate (CAGR) of the investment would likely exceed 8% annually.

Investors who purchased PETGAS shares in 2004 and held them until 2024 achieved an approximate total return of 363% over 20 years, primarily driven by consistent dividends and significant capital appreciation.

3 weeks ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$â¬Â£Â¥

Total return from Petgas from 2014 to 2024

Stock Price Analysis:

In 2014, PETGAS was trading around RM21–RM23 per share.
As of November 2024, PETGAS trades at approximately RM17.80 per share

This represents a price decline of about 18–22% over 10 years.

Dividends:
PETGAS has consistently paid dividends, often yielding between 4–5% annually. The payouts were generally between RM0.64–RM0.88 per share annually, depending on the year. Over 10 years, the cumulative dividends are estimated at around RM7–RM8 per share

Total Return Estimation:
Capital Loss: A decrease of around RM4–RM6 per share from the 2014 price.
Dividend Gain: Adding back RM7–RM8 from dividends results in a net gain of approximately RM1–RM3 per share over the 10 years.

When factoring in the initial investment, this translates to an annualized return of approximately 0.5–1.5% per year, driven mostly by dividends rather than capital appreciation. The returns are modest and highlight the importance of dividend income for PETGAS investors.

3 weeks ago