20151006-Maybank_KERPL-Regional_O_il___Gas_11页_759kb

Regional Oil & Gas Summary

Core Content Overview

The document provides a summary of the oil and gas market trends and company-specific updates as of 5 October 2015. It includes:

• Oil and Gas Price Movements: Crude oil prices for Brent and WTI have increased overnight, with Brent rising by 2.3% to USD49.25/b and WTI by 1.6% to USD46.26/b. Other products such as Dubai Fateh Spot, China Daqing Spot, and Singapore 92 RON Spot also saw price increases.
• Market Analysis: The rally in US gasoline prices and Russia's willingness to engage with other oil producers contributed to the rise in crude oil prices. Global markets are assessed by Platts.
• Company Updates: Shell has started operations at Bonga Phase 3, increasing production capacity. The UAE remains on track to meet its 2017 production capacity target despite lower oil prices. GAIL India is unlikely to take more than 10% stake in the TAPI pipeline. Russia's Soyuzneftegaz has abandoned exploration plans in Syria due to conflict.
• Investment Reports: Perisai Petroleum faces delays and asset impairment concerns, leading to a SELL rating. Trans-Asia Oil & Energy Development's coal plant is on track, resulting in a BUY rating. PetroVietnam Gas has revised its pricing assumptions and EPS, but still maintains a BUY rating due to being oversold.
• Valuation Data: The document includes valuation metrics such as PER, EV/EBITDA, and ROE for various Asian oil and gas companies, as well as the global average for major oil and gas firms.

Main News Headlines

• Crude settles higher on petrol jump: Crude oil prices rose over 2% due to increased US gasoline prices and cooperation among oil producers.
• Shell in Bonga Phase 3 start-up: Shell aims for 50,000 barrels of oil equivalent per day production at Bonga Phase 3.
• UAE on track to meet 3.5 mil b/d production capacity target in 2017: The UAE continues to invest in oil and gas despite lower prices.
• GAIL India Unlikely to Take More than 10% Stake in TAPI Pipeline: GAIL India is willing to invest 10% equity in the TAPI project but acknowledges the risks involved.
• Russia's Soyuzneftegaz Drops Plan to Explore for Oil, Gas in Syria: Due to the ongoing conflict, Soyuzneftegaz has frozen its projects in Syria and plans to transfer them to another Russian company.

Key Information

• Price Movements:

  • Brent: USD49.25/b, up 2.3%
  • WTI: USD46.26/b, up 1.6%
  • Dubai Fateh Spot: USD46.70/b, up 2.2%
  • China Daqing Spot: USD42.57/b, up 2.4%
  • NYMEX Henry Hub: USD2.45/MMBtu, down 0.0%
  • LNG Northeast Asia CFR: USD6.67/MMBtu, up 2.4%
  • Gold: USD1,135.75/Oz, down 0.3%
  • USD-CNY: 6.36, up 0.0%
  • DJI: 16,776.43, up 1.8%
  • S&P 500: 1,987.05, up 1.8%

• Company Reports:

  • Perisai Petroleum: Delays in rig delivery and ongoing asset impairment concerns.
  • Trans-Asia Oil & Energy Development: SLTEC coal plant is on track with potential upside from power barges and expansion.
  • PetroVietnam Gas: Revised pricing assumptions and EPS, but maintains a BUY rating.

• Valuation Table (Asia Oil & Gas):

Analysts

• Howard Wong: HK/CHINA
• Jigar Shah: INDIA
• Pandu Anugrah: INDONESIA
• Liaw Thong Jung: MALAYSIA
• Michael Bengson: PHILIPPINES
• Yeah Chee Keong: SINGAPORE
• Sutthichai Kumworachai: THAILAND
• Le Nguyen Nhat Chuyen: VIETNAM
• Truong Quang Binh: VIETNAM

Key Insights

• Market Trends: Crude oil prices have seen a rise due to increased demand for gasoline and cooperation among producers.
• Company Performance: Shell and UAE are making progress in their projects, while some companies like Perisai Petroleum face challenges.
• Investment Outlook: Some companies are rated as BUY due to positive developments and potential growth, while others are SELL due to delays and risks.
• Valuation Metrics: PER and EV/EBITDA are key indicators for evaluating companies, with some showing strong performance and others needing caution.