KUALA LUMPUR: OSK Research expects a poor 2Q quarter for PETRONAS GAS BHD [] when it announces its results at month's end since the July'Aug quarter is traditionally weaker given the higher staff and maintenance costs.
In a research note issued on Monday, Nov 15, it also pared down its medium term forecasts to account for slower centralised utilities facilities growth and lower Throughput margins, in line with management's cautious statements.
Nonetheless, the longer term prospects are brightening, with the upcoming LNG import terminal expected to bring in some 11% more gas to Petronas Gas's pipelines.
'While our earnings forecast has been cut, we are raising our terminal growth rate and our DCF value is only pared down to RM13.25. Maintain Buy,' it said.
In a research note issued on Monday, Nov 15, it also pared down its medium term forecasts to account for slower centralised utilities facilities growth and lower Throughput margins, in line with management's cautious statements.
Nonetheless, the longer term prospects are brightening, with the upcoming LNG import terminal expected to bring in some 11% more gas to Petronas Gas's pipelines.
'While our earnings forecast has been cut, we are raising our terminal growth rate and our DCF value is only pared down to RM13.25. Maintain Buy,' it said.
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