Maybank IB maintains 'hold' on Gas M'sia
Published on: Tuesday, April 15, 2014
Kuala Lumpur: Maybank Investment Bank Bhd Research (Maybank IB) has maintained its 'Hold' call on Gas Malaysia Bhd following the company's announcement that the Malaysian government has approved a 20 per cent increase in blended gas tariffs to RM19.32/mmBTU (Million Metric British Thermal Unit) from RM16.07/mmBTU, effective May 1, 2014.In a research note Monday, the investment bank said the hike appeared to merely reflect a pass-through of higher gas cost based on last year's gas volumes, thus, any incremental gas sales this year would be earnings-dilutive."Our forecast presently imply no change in Gas Malaysia's RM2.02/mmBTU margin spread for both regulated and liquefied natural gas-sourced gas going forward, as the company didn't mention any changes to its spread from the hike.
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