Workers work on signage with a Petronas logo in Kuala Lumpur on March 12, 2017. – Photo by Yusof Mat Isa

KUALA LUMPUR, December 7 – Maybank Investment Bank (Maybank IB) believes that the implementation of Cukai Makmur During fiscal year 2022 (FY22), the decline in profits of Petronas Gas Bhd would be brought forward by one year.

As a result, he lowered the profit forecast for FY22 by 11 percent for Petronas Gas to reflect the impact of the single tax.

The impact is relatively pronounced as the processing, transportation and utilities segments of Petronas Gas are combined under a single entity.

Meanwhile, based on the stipulated schedule, the likely drop in transmission tariffs would be most severe during the next regulatory period starting in 2023.

“We’re currently assuming a 20% rate cut in FY 23. That’s our point, (that) was probably a relevant overhang for the stock,” he said in a note. .

For the transport segment of Petronas Gas, remember that the RAB (regulated asset base) used to determine the tariffs is based on a weighted sliding average of the depreciated replacement value and the historical cost.

“Management is looking for new projects to help offset the impending decline.

“The southern debottlenecking exercise is underway, and is expected to be completed by mid-2022,” he said, adding that Petronas Gas is also seeking interest in a third liquefied natural gas (LNG) storage tank. in Pengerang (commissioning as early as possible in 2025).

Other ongoing growth pursuits include integrated utility solutions in industrial parks, power generation (IPP) and LNG-to-Power.

Maybank IB maintains a buy hold on Petronas Gas with an unchanged target price of RM17.20. – Bernama