Friday, 6 April 2012

RHB Research Overweight on oil & gas sector

KUALA LUMPUR (April 6): RHB Research Institute Sdn Bhd has an Overweight rating on the oil and gas sector and said it was positive on the sector following Petroliam Nasional Bhd’s (Petronas) statement on April 5 that the proposed Refinery and Petrochemical Integrated Development (RAPID) project, to be located in Pengerang, Johor, was progressing as scheduled.

The research house said on Friday that the statement was the closest indication yet that the RAPID would proceed as planned.

According to Petronas, the RAPID project in Pengerang, Johor is progressing as scheduled, with pre-qualification exercise for the various tender packages likely to begin in stages from the 3Q2012 at the earliest. The project is currently in the front-end engineering design

“The key beneficiaries of RAPID include Dialog (as RAPID will complement its crude oil tank terminal, and provide opportunities for its plant maintenance business) and Petronas Chemicals, which will most likely be involved as owner/operator.

“The two stocks are our top picks for the sector,” it said.

RHB Research has an outperform rating on both Dialog and Petronas Chemicals, with fair values of RM3.08 and RM7.73 respectively.

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