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GAS [M-PF -5.2%] - Sudden input price hike dampens outlook despite strong oil price - Update

Company Research

24 May 2018

We cut our target price for GAS 21.4% due to a doubling of the input gas price assumption for Block 11.2 (~10% of GAS’s volume) from January 1, 2019, slow progress of new projects and a higher risk premium. We also factor in a 5% discount for rising risk to Wild Orchid gas field. 2018 recurring NPAT is estimated to grow 29.5% YoY due to 5.4% higher sales volume and a 4.0%-15.5% YoY increase in fuel oil price and LPG price.
Tags: GAS

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