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Feb. 2 (Bloomberg) -- Petronas Gas Bhd. surged to a record in Kuala Lumpur trading after the stock’s so-called fair value was raised at AMMB Holdings Bhd. to reflect rising demand for natural gas and the prospects of more gas plants in Malaysia.
Shares of the gas distributing arm of state oil company Petroliam Nasional Bhd., or Petronas, jumped as much as 12 percent to 17.50 ringgit, the highest intraday price on record. They traded at 16.06 ringgit at the 12:30 p.m. local time break. Petronas Gas is the third-best performer on the benchmark FTSE Bursa Malaysia KLCI Index today.
Petronas, which is building a $20 billion refining complex bordering Singapore, said in June it will construct a liquefied natural gas import and re-gasification terminal there. The oil and gas hub is aimed at complementing Malaysia’s 10-year $444 billion program to build roads, railways and power plants.
“We remain positive on Petronas Gas due to the global shift from nuclear to natural gas for power generation,” Alex Goh, an analyst at AMMB, wrote in a report today. The company will gain from the “multiple domestic re-gasification projects and expanding power generation ventures,” he said. Goh raised his fair value for the stock to 17.62 ringgit from 15.30 ringgit and kept his “buy” rating.
Petronas and Tenaga Nasional Bhd., Malaysia’s biggest power producer, are investing in a 300-megawatt gas plant and LNG terminal in eastern Sabah state, the Star newspaper reported today, citing Tenaga Chief Executive Office Che Khalib Mohd Noh. He couldn’t be immediately available for comment when phoned at his office today, as he was out for a meeting.
Petronas Gas processes natural gas from offshore fields before being piped and delivered to power, industrial and commercial users. The company reported net income of 350.2 million ringgit ($116 million) for the second quarter ended Sept. 30. Revenue was 927.3 million ringgit. It gave no year-ago comparison after changing the company’s fiscal year-end.
--Editors: Chan Tien Hin, Allen Wan
To contact the reporter on this story: Gan Yen Kuan in Kuala Lumpur at firstname.lastname@example.org
To contact the editor responsible for this story: Darren Boey at email@example.com