KUALA LUMPUR, Aug 23 — HwangDBS Vickers Research, which maintained a buy call on Petronas Gas Bhd, expects a stronger second half this year led by the maiden contribution from the Malacca Regas plant and larger gas capital expenditure.

“We expect earnings to recover in the second half and management has guided for 3-5 per cent per annum earnings growth from the Regas plant, thus contributing to a promising outlook as Petronas planned to invest RM15 billion to find new gas to cater for the rising demand in Peninsular Malaysia,” it said in a research note today.

The company was also poised to secure overseas ventures given its strong balance sheet, HwangDBS said.

Petronas Gas’ second quarter net profit rose to RM944.9 million from RM458.86 million a year ago while for the first six months, profit increased 64.7 per cent to RM1.3 billion from RM792.32 million previously on the back of higher revenue of RM1.84 billion.

Meanwhile, Alliance Research said the first half results were within expectations.

“It saw its maiden contribution from RGT in second quarter that commenced late May. Revenue contribution was insignificant at RM17.4 million (1.9 per cent of second quarter revenue) while losses were incurred for the RGT given its start-up phase with -RM2.8 million at the gross level.

“Assuming the RM17.4 million revenue was solely generated in the month of June, this could potentially bring RGT revenue this year to RM121.8 million. This is within our full year projection of RM120.7 million,” Alliance added. — Bernama