KUALA LUMPUR (Dec 29): The increase in tariffs imposed by PETRONAS Gas Bhd (KL:PETGAS) on third parties to use its infrastructure assets would raise its core earnings by up to 4%, all else being equal, said CIMB Securities.
The higher tariffs, effective 2026-2028, are imposed as part of the revision for the third gas industry regulatory period (RP3), covering PetGas' Peninsular Gas Utilisation (PGU) transportation pipeline and regasification terminals (RGTs).
However, more clarity is needed as the earnings impact "could be neutral" if the tariff hike "is intended merely to offset higher opex", CIMB Securities said in a note.
CIMB Securities noted that the most material change under the RP3 is the 12.5% increase in the PGU transportation base tariff, which comes into effect from January 2026.
This could lift PetGas' fair value to RM20 per share, the research house said. However, as PetGas has yet to disclose the regulated capital expenditure and any changes to the regulated return under the RP3, CIMB Securities kept its target price at RM19.40.
"The changes for the other tariffs are somewhat mixed and minor", CIMB Securities said, pointing to a lower compression base tariff for gas supply to Singapore, higher tariff for the Sungai Udang RGT, and lower tariff for the RGT in Pengerang.
The stock was down by two sen or 0.1% at RM18.34 at the time of writing on Monday, valuing the company at RM36.3 billion.