Petronas Gas Bhd is OSK Research's "top buy" in the utility sector as 80 per cent of its profits is guaranteed by
Petronas via the gas processing and transmission agreement.
The opening of new liquefied natural gas (LNG) regas terminal in Melaka and future regas terminals in Johor and Sabah would be Petronas Gas' growth catalysts, the research house said today.
It said the new gas supply from the Melaka plant would certainly boost the domestic supply of gas, not only for Tenaga Nasional Bhd (TNB) but also for other gas players in Peninsular Malaysia, namely Petronas Gas and Gas Malaysia.
"Petronas Gas will enjoy a new source of revenue in operating the LNG plant and also get to transport more gas via its Peninsular Gas Utilisation network.
"Given that its revenue is somewhat volume-driven, this should boost both its top- and bottom-lines," it said. -- BERNAMA
Petronas via the gas processing and transmission agreement.
The opening of new liquefied natural gas (LNG) regas terminal in Melaka and future regas terminals in Johor and Sabah would be Petronas Gas' growth catalysts, the research house said today.
It said the new gas supply from the Melaka plant would certainly boost the domestic supply of gas, not only for Tenaga Nasional Bhd (TNB) but also for other gas players in Peninsular Malaysia, namely Petronas Gas and Gas Malaysia.
"Petronas Gas will enjoy a new source of revenue in operating the LNG plant and also get to transport more gas via its Peninsular Gas Utilisation network.
"Given that its revenue is somewhat volume-driven, this should boost both its top- and bottom-lines," it said. -- BERNAMA
