Petgas FY22 core net profit was in line with forecast (but below consensus), said Maybank IB as lower-than-expected EBIT was offset by tax writebacks. Given the lack of detailed regulatory disclosures thus far, the upcoming 1Q23 results are important as a gauge of the RP2 earnings run rate.
Excluding unrealised forex, PTG’s 4Q22 core net profit of MYR387m (-15%YoY, -17% QoQ) brings FY22 core net profit to MYR1,696m (-16% YoY), 1%/6% below consensus forecasts respectively. The earnings drag from Cukai Makmur during FY22 was further exacerbated by higher gas costs incurred (in relation to fuel gas and internal gas consumption). A 22sen interim DPS was declared, bringing full year DPS to 72sen (-12% YoY).
Segmental trends in 4Q22 were generally in line with the exception of transport, which was disappointing due to higher internal gas costs (both for the quarter and adjustments made for prior quarters). Processing EBIT was lower QoQ due to higher maintenance expenses. Utilities EBIT was also lower QoQ due to sequentially higher gas costs. Regas was the only segment to post sequentially higher EBIT in the quarter.
On this aspect, Maybank IB is maintaining a hold position on the stock. As for new projects, the management has formally announced its involvement in the 52MW power plant in Sipitang, Sabah, with targeted commissioning in
The house is lowering the FY23/24 earnings forecasts by 6% each to reflect the latest run rates (transport segment in particular), and introduce FY25 forecasts. TP is consequently lowered to MYR17.00 (from MYR17.40).
