Petronas Gas - Benefits from Natural Gas Hike?

Company : Petronas Gas Berhad

Business :

A gas infrastructure company rather than a pure natural gas selling company. The company has the infrastructure of processing gas, transport gas, LNG regasification and provide utilities to other petrochemical plants. There 4 business units and the summaries are as follow:

 Gas processing

Gas transportation

LNG regasification Terminals

Note: LNG – Gas is cool down for easy transportation. Regasification is turning LNG to gas again.

 

 

Utilities

 

 Good profit margin but very small CAGR in revenue and PAT.

 

10 years revenue record:

Profit margin stable at around 35%.

 

Growth opportunity

• The price is regulated by EC, so no growth even natural gas spike up. See note from the CEO.
• New gas power plants.
• Construction of Cogen plants.
• Building LNG storage tank no.3 in Pengerang (not sure any financial contribution).

 

 

Risk

• No risk business.
• Not even effected by COVID or any lockdown!

 

Dividen History

Attractive and pay dividen every quarter as business is super stable. Total for FY 2021 should be at least 82 cents and potential higher!

 

Technical Analysis on Chart

Not much of fluctuation on price as major shareholders are big institutions.  Any price near RM16 is good to accumulate for its dividen. This is very stable business for the company. Gas is still relevant for many years to come.

 

At time of writing, I don’t have any PetGas share.