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Regional Oil & Gas Summary

Core Content Overview

This document provides an overview of the oil and gas market in Asia and the Middle East, including recent price movements, news headlines, and analyst ratings for key companies. It also includes a table of major oil and gas prices and indices as of 4 August 2015, along with valuations for oil and gas service companies.

Oil Price Movements

• Brent Crude Oil: Increased by 0.9% to USD49.99/b, with a 1-day change of +0.47 and a 1-month change of -17.8%.
• WTI Crude Oil: Rose by 1.3% to USD45.74/b, with a 1-day change of +0.57 and a 1-month change of -18.9%.
• Dubai Fateh Spot: Fell by 2.4% to USD48.59/b, with a 1-day change of -1.20 and a 1-month change of -19.7%.
• China Daqing Spot: Declined by 1.7% to USD52.14/b, with a 1-day change of -0.92 and a 1-month change of +8.4%.
• NYMEX Henry Hub: Increased by 2.3% to USD2.81/MMBtu, with a 1-day change of +0.06 and a 1-month change of -6.0%.
• LNG Northeast Asia CFR: Remained unchanged at USD8.07/MMBtu, with a 1-day change of +0.00 and a 1-month change of -2.6%.
• Singapore 92 RON Spot: Rose by 1.8% to USD64.65/b, with a 1-day change of +1.15 and a 1-month change of +10.7%.
• Gasoil 500 ppm SG Spot: Increased by 0.3% to USD63.51/b, with a 1-day change of +0.19 and a 1-month change of -15.5%.
• 3.5% 180cst Fuel SG Spot: Rose by 0.3% to USD274.60/mt, with a 1-day change of +0.77 and a 1-month change of -18.8%.
• Gold: Increased slightly by 0.1% to USD1,087.70/Oz, with a 1-day change of +0.91 and a 1-month change of -6.9%.
• USD-CNY: Remained stable at 6.21, with a 1-day change of 0.00 and a 1-month change of +0.1%.
• DJI: Declined by 0.3% to 17,550.69, with a 1-day change of -47.51 and a 1-month change of -0.5%.
• S&P 500: Dropped by 0.2% to 2,093.32, with a 1-day change of -4.72 and a 1-month change of +2.2%.

Key News Headlines

• Oil prices edge up after 5 pct fall, but outlook weak (Reuters, 4 August 2015):

  • Oil prices rose slightly after a 5% drop in the previous session.
  • OPEC production reached a record high in July, and further increases are expected if Iran lifts sanctions.
  • Analysts warn of further declines due to high global production and weak economic outlook in Asia.

• Oil price unlikely to recover as Saudi refining hits market (Reuters, 4 August 2015):

  • Saudi Arabia's refining activities are expected to increase, potentially causing other refiners to reduce operations.
  • This could lead to an oversupply of crude oil, putting downward pressure on prices.

• Shale boom propels propane-powered trucks from dream to reality (Bloomberg, 5 August 2015):

  • Propane prices are near a 13-year low, 75% cheaper than diesel.
  • Propane is being used to power trucks, reducing emissions and costs.
  • Companies like Blue Star Gas and United Parcel Service are converting their fleets to propane.

• PetroChina wins dismissal of securities lawsuit in U.S. (Bloomberg, 4 August 2015):

  • PetroChina was dismissed from a securities fraud lawsuit by U.S. investors.
  • The court ruled that the investors failed to present a plausible case of false or misleading statements.

• China to grant 6.16 mln T annual crude oil import quota to Ningxia refiner (SZ China, 4 August 2015):

  • China has given preliminary approval for a crude oil import quota to an independent refiner in Ningxia.
  • This move is part of the government's effort to open up the crude oil import business to more players.

• China LPG prices stay unchanged amid thin buying interest, steady supply (SZ China, 4 August 2015):

  • LPG prices in South and East China remained stable despite Saudi Aramco reducing contract prices.
  • Propane and butane prices in CFR South China were down from previous weeks.

Our Latest Reports

PetroVietnam Drilling

• Initiation: BUY
• Reason: Meaningful upside potential, recent catalysts overlooked, and the company's defensive nature.
• Price: VND14,000 (4 August 2015)
• Target Price: VND16,800

Malaysia Oil & Gas

• News: Iran reached an agreement with P5+1.
• Rating: NETURAL
• Comment: While expected, the reaction may dampen sentiment due to DD-SS imbalances.
• Preferred BUYs: Yinson, Bumi Armada, Dialog, KNM

SapuraKencana Petroleum

• News: Bags ONGC's USD273m turnkey job.
• Rating: HOLD
• Comment: Small impact on earnings, GSA negotiations ongoing, target price unchanged at MYR2.80.

Petronas Chemicals

• Comment: Things back to normal.
• Rating: HOLD
• Target Price: Raised to MYR6.60 from MYR5.35 due to promising ASP outlook and weaker MYR against USD.

Company Valuations

Asian Oil & Gas Valuations

Asian Oil & Gas Service Valuations

Analysts

• Howard Wong (HK/CHINA): Contact (852) 22680648 | Email: howardwong@kimeng.com.hk
• Jigar Shah (INDIA): Contact (91) 2266232632 | Email: jigar@maybank-ke.co.in
• Pandu Anugrah (INDONESIA): Contact (62) 21 2557 1137 | Email: pandu.anugrah@maybank-ke.co.id
• Liaw Thong Jung (MALAYSIA): Contact (603) 22978688 | Email: tliaw@maybank-ib.com
• Michael Bengson (PHILIPPINES): Contact (63) 28498840 | Email: micheal bengson@maybank-atrke.com
• Yeah Chee Keong (SINGAPORE): Contact (65) 6231 5842 | Email: yeakcheeong@maybank-ke.com.sg
• Sutthichai Kumworachai (THAILAND): Contact (66) 2658 6300 x 1400 | Email: sutthichai.k@maybank-ke.co.th
• Le Nguyen Nhat Chuyen (VIETNAM): Contact (84) 844555888×8082 | Email: chuyen.le@maybank-kimeng.com.vn
• Truong Quang Binh (VIETNAM): Contact (84) 444555888 x 8087 | Email: binh.truong@maybank-kimeng.com.vn