You're accessing 15 mins delay data. Turn on live stream now to enjoy real-time data!

Last Price


Today's Change

+0.12 (0.72%)

Day's Change

16.60 - 16.90

Trading Volume


News and Blogs
2 people like this. Showing 50 of 1,404 comments


Petronas ups annual capex to RM60 bil, makes first allocation for clean energy
June 09, 2022 16:20 pm +08

KUALA LUMPUR (June 9): Petroliam Nasional Bhd (Petronas) is allocating about RM60 billion for capital expenditure (capex) in financial year ending Dec 31, 2022 (FY22) compared with RM30.5 billion a year earlier as the Malaysian national oil company prepares for the resumption of business activities, which were earlier disrupted by Covid-19-driven movement restrictions, and as the group sets aside money for clean energy or non-hydrocarbon-related ventures.
"This year, we expect to almost double that [capex] amount which is RM60 billion, because of catch-up and the return of [business] activities. This is also the time we have to make inroads in some material steps into the non-hydrocarbon side of things," Petronas chief financial officer Liza Mustapha said on Thursday (June 9) at the MIDF Conversations event, which was held virtually.
MIDF group managing director Datuk Charon Mokhzani was the moderator for the event.
Liza said that out of Petronas' planned RM60 billion capex allocation for FY22, about RM40 billion has been earmarked for the oil and gas business besides non-hydrocarbon–related operations while the balance of the capex allocation has been earmarked to finance Petronas Chemicals Group Bhd's (PetChem) wholly-owned subsidiary Petronas Chemicals International B.V. (PCIBV) proposed acquisition of the entire stake in Sweden-based specialty chemicals group Perstorp Holding AB for €1.54 billion (about RM7.02 billion) from Financiere Foret S.A.R.L.
Petronas owns a 64.35% stake in PetChem, according to PetChem's latest annual report.
Looking ahead, Liza said non-hydrocarbon-related income is expected to account for about 30% of Petronas' revenue.
"[About] 30% of our revenue should be coming from something which is not related to hydrocarbons.
"We have to factor in [business] growth, otherwise, we will not be able to manage the energy transition and we will miss our target of achieving [net] zero [carbon] emissions by 2050," she said.
According to her, about 10% of Petronas' RM60 billion capex allocation for FY22 will be earmarked for non-traditional businesses such as specialty chemicals and solar energy.
"Previously, I think there was never a plan on what rate it should be [for the clean energy segment] because there was no allocation from the top. So, it didn't really take off.
"So, we need to rethink our decision on the capital allocation [for the clean energy segment] and put it aside, because if we leave it at that and let them go with the flow, we are going to be a year behind the target again," she said.
Petronas' financials improved in 1QFY22. In a statement on May 31, 2022, Petronas said profit after tax rose to RM23.44 billion in 1QFY22 from RM9.22 billion a year earlier while revenue climbed to RM78.75 billion from RM52.55 billion.
"Despite favourable [first quarter] performance, the high oil and gas prices are expected to remain vulnerable with increased volatility due to geopolitical and macro-economic uncertainties.
"Petronas will continue to strengthen our operational excellence to maximise value creation whilst intensifying our growth and sustainability agenda in Malaysia and internationally,” the company said.

Edited By: Chong Jin Hun

2022-06-10 07:16


a gud stock to consider! just wait for better price!

2022-06-10 07:42


yup, keep while low

2022-06-10 12:00

James Ng

[转贴] [Video:浅谈PETRONAS GAS BERHAD, PETGAS, 6033] - James的股票投资James Share Investing

2022-06-18 07:18


Oil price going to second wave soon ?

2022-07-12 11:41


Hahaha, 2nd wave in your dream maybe

2022-07-12 17:38


Seizure assets of petronas , what happened ?

2022-07-13 12:56


Breaking News!!!!!
US enters technical recession as economy shrank 0.9% in Q2

2022-07-28 22:09


why vy few investors interested?

2022-07-29 10:58


price should LU n gauged demand when regasification facility (converting liquefied natural gas to natural gas) in Melaka commenced after September '22.

RGTSU (Regasification Terminal Sungai Udang) is known as the world's first-of-its-kind regasification unit on an island jetty, according to PetGas.

2022-07-29 11:15


Tommorrow once the Donbast referendum being passed, then Russia will annexed those 4 Donbast regions from Ukraine, then will start war between Russia and Europe, then oil price will spike up to above USD $120 again !

Then all the O & G counters will spike up to sky high especially Petgas's price will break above RM25.00

Heng ah, Ong ah, Huat ah !

2022-09-26 17:43


Post removed.Why?

2022-09-28 07:05


Post removed.Why?

2022-10-04 08:11


Post removed.Why?

2022-10-05 07:19


Oil prices could soon return to $100 as OPEC+ considers ‘historic’ cut, analysts say

Sam Meredith @SMEREDITH19

* OPEC and non-OPEC producers, a group often referred to as OPEC+, will meet in Vienna, Austria on Wednesday to decide on the next phase of production policy.
* The oil cartel and its allies are considering an output cut of more than a million barrels per day, according to OPEC+ sources who spoke to Reuters.
* "The OPEC ministers are not going to come to Austria for the first time in two years to do nothing. So there's going to be a cut of some historic kind," said Dan Pickering, CIO of Pickering Energy Partners.

2022-10-05 07:38


Post removed.Why?

2022-10-06 07:21


White House Disappointed With OPEC’s ‘Shortsighted’ Decision
By Charles Kennedy - Oct 05, 2022, 12:00 PM CDT

A White House statement following the OPEC+ decision to defy the Biden administration with an output cut for November vows to find new ways to temper OPEC’s control over energy prices. 

Earlier on Wednesday, members of OPEC+ said they would cut November production quotas by 2 million bpd, citing the “uncertainty that surrounds the global economic and oil market outlooks”. 

The decision immediately led to a more than 2% increase in Brent crude and WTI prices and goes directly against the Biden administration’s attempts to lobby Saudi Arabia for higher production to bring prices down. 

Shortly after the release of an OPEC+ press release detailing the output cuts, the White House said, “In light of today's action, the Biden Administration will also consult with Congress on additional tools and authorities to reduce OPEC's control over energy prices.”

2022-10-06 07:44


Post removed.Why?

2022-10-07 07:17


Post removed.Why?

2022-10-08 07:45


Trading volume was RM1.62 billion shares exchanging hands for RM762.34mil.

Blue-chips erased earlier gains with Public Bank adding two sen to RM4.34, CIMB easing two sen to RM5.35 and Hong Leong Bank unchanged at RM20.60.

PETRONAS Chemicals fell one sen to RM8.50 and PETRONAS Gas dropped 12 sen to RM16.98.

2022-11-08 12:05


Petronas Gas Bhd’s (PetGas) defensive earnings capabilities remain an attractive investment theme with analysts, while the opportunity to supply gas to new clients offer growth moving into 2023.

2022-11-16 13:58


The company’s gas processing business’ earnings will largely sustain into quarters ahead protected by existing long-term contracts with PETRONAS while the gas transportation and regasification segments long term prospects are protected under the regulated asset base structure.

HLIB Research, however warned PetGas’ short term earnings remain affected by higher internal gas consumption and increasing fuel price before possibly recovering in the subsequent review period for RP2 (2023-2025).

The research house maintained its “hold” call on the counter with a TP of RM17.85.

“While we expect PetGas to continue maintaining its dividend payout given its high current net cash position of 89 sen per share, we expect earnings to remain affected by the increasing fuel costs in the near term, on top of the Prosperity Tax impact for the year as well as uncertainty on new tariff structure under RP2 2023-2025,” it said.

2022-11-16 13:58


Petroliam Nasional Bhd (Petronas), Eni SpA and Euglena Co Ltd are jointly studying the possibility of developing and operating a biorefinery in the Pengerang Integrated Complex (PIC).

2022-12-15 12:26


The biorefinery will be able to leverage the company’s integrated value chain as well as existing utilities and facilities in PIC

2022-12-15 12:28


The biorefinery is also expected to have the capability to process about 650,000 tonnes per year of raw materials to produce up to 12,500 barrels per day of biofuels.

2022-12-15 12:29


The biorefinery is expected to have a flexible configuration to maximise the production of sustainable aviation fuel for aircraft as well as hydrogenated vegetable oil for on-road vehicles, diesel-powered trains, and marine transportation

2022-12-20 11:31


The raw materials to be used will not compete with those in the food chain such as used vegetable oils, animal fats, waste from the processing of vegetable oils, and other biomass including microalgae oils to be explored in the mid term

2022-12-20 11:32


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


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

2022-12-24 22:02


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

2022-12-25 15:23


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


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

2023-01-18 20:41


用数据预测 PETGAS2022Dec 的业绩

2023-02-03 21:28


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


Anyone knows what was the IPO price for this counter?

2023-02-25 06:15


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

Mohamad Jeffrey Ismail

Anyone received the recent dividend already?

2023-03-21 10:43


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

2023-03-27 09:21

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

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


Bagaimana CEO Petronas boleh beri projek RM399 juta kepada syarikat terkait rasuah antarabangsa?

2023-05-08 08:36


Anyone heard what the door gift is for this agm?

2023-05-11 12:20

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

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


A positive Q12023

2023-05-23 10:20


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

2 months ago


Post removed.Why?

2 months ago


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💪

1 month ago

Integrity. Intelligent. Industrious. 3iii (iiinvestsmart)$€£¥

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.

1 month ago


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

1 month ago


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...

3 weeks ago

Post a Comment