KUALA LUMPUR: Gas Malaysia is expected to enjoy a RM2 per British thermal unit (mmbtu) gas spread this year after adjustments to the gas selling price and input cost, said AllianceDBS Research.
In a research note today, the research company said after the government's revision of the gas tariff, Gas Malaysia will increase its average selling price by 2.3 per cent to RM19.77/mmbtu.
AllianceDBS rated Gas Malaysia as 'hold' with the target price of RM3.75.
Maybank Investment Bank said it expected a sequentially lower fourth quarter earnings anticipating either a lower volume gas sold or an erosion in Gas Malaysia's existing gas spread going forward.
It maintained a 'hold' on the company with unchanged target price of RM3.40.
Affin Hwang Investment Bank said Gas Malaysia's higher-than-expected gas volume sold might be detrimental but only to near-term earnings due to a lag effect.
It maintained 'reduce' call on the company and the target price of RM3.35.-- Bernama