Thursday, January 13, 2011

Petronas Gas 6033


Is it good to buy and keep this company at current level (RM11.26)? It has been moving up slowly, earning growth is recovering and so do its profit margin. Looking at latest financial result, H1 net profit at around ~82% from last full year net profit. Balance sheet also extremely healthy with net cash position and most of their liabilities is under payable term. Total liabilities has decreased by ~14% in 5 years while its asset has grown by ~13% in same period..strng cash flow and ok level of dividend payout..i think they give me a good safety margin..but yea..its run as slow as rabbit.

Anyway, they have been awarded by Petronas the development and provision of liquefied natural gas (LNG) facilities and services in the vicinity of Sungai Udang Port, Melaka. PTG will act as the plant’s owner and operator. This plant will resolve the problem of gas supply constraints in Peninsular Malaysia and allow the possible extension of first generation power purchase agreements as well as increase the supply of gas for non-power users.


p/s-2011 (6months result)

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