Friday 29 Mar 2024
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KUALA LUMPUR (Apr 30): Petronas Gas Bhd will allocate RM5 billion as capital expenditure (capex) over the next five years.

Managing director cum chief executive officer Yusa Hassan said 60% of the capex would finance Petronas Gas' (fundamental: 2.7; valuation: 1.1) liquified natural gas (LNG) regasification terminal and air separation projects in Pengerang, Johor. The balance 40% portion is for maintenance and operation capex, according to him.

Yusa, who was speaking to reporters after Petronas Gas' annual general meeting here today, said the company's "immediate growth" would come from the LNG regasification and air separation projects.

On the regasification terminal, he expects the first tank to start operations by the end of 2017, while the second tank is anticipated to commence operations in the middle of 2018.

Yusa said the air separation unit was expected to begin operations by end of 2018.

On capex for financial year ending Dec 31, 2015, he said RM1.75 billion or 35% of the RM5 billion allocation would be earmarked for the year.

FY14 capex was about RM1 billion, according to Yusa.

Petronas Gas shares fell 10 sen or 0.4% at 4:18pm today to RM22.86, for a market capitalisation of RM45.23 billion. A total of 933,700 units changed hands.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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