20140616-Maybank_KERPL-Regional_Oil___Gas_Grease_Spot_–_16_June_2014_11页_573kb

Regional Oil & Gas Summary - 16 June 2014

Core Content Overview

This document provides a summary of the oil and gas market dynamics in Asia and the Pacific, including price movements, key news headlines, and the latest reports from various companies. It also includes a valuation comparison of major oil and gas companies and oil service providers across different countries in the region.

Key Market Movements

• Crude Oil Prices:
  • Brent Crude Oil: Closed at USD112.46, with a 0.04 USD increase (0.0% change) over the last day, 4.3% over the last week, and 3.6% over the last month.
  • WTI Crude Oil: Gained USD0.38 to USD106.91, with a 0.4% increase over the last day, 4.1% over the last week, and 5.1% over the last month.
  • Dubai Fateh Spot: Closed at USD108.97, with a 3.22 USD increase (3.0% change) over the last day, 4.5% over the last week, and 3.4% over the last month.
  • China Daqing Spot: Closed at USD111.60, with a 3.29 USD increase (3.0% change) over the last day, 4.8% over the last week, and 1.5% over the last month.
  • NYMEX Henry Hub: Closed at USD4.74, with a 0.02 USD decrease (-0.5% change) over the last day, 0.6% over the last week, and 8.4% over the last month.
  • LNG Northeast Asia CFR: Closed at USD13.80, with no change over the last day, week, and a -0.4% change over the last month.
  • Singapore 92 RON Spot: Closed at USD118.86, with a 1.30 USD increase (1.1% change) over the last day, 1.8% over the last week, and 1.5% over the last month.
  • Gasoil 500 ppm SG Spot: Closed at USD123.29, with a 3.38 USD increase (2.8% change) over the last day, 4.1% over the last week, and 0.5% over the last month.
  • 3.5% 180cst Fuel SG Spot: Closed at USD622.80, with a 11.84 USD increase (1.9% change) over the last day, 3.3% over the last week, and 2.6% over the last month.
  • Gold: Closed at USD1,276.96, with a 3.50 USD increase (0.3% change) over the last day, 1.9% over the last week, and -2.2% over the last month.
  • USD-CNY: Closed at 6.21, with a -0.02 decrease (-0.3% change) over the last day, -0.7% over the last week, and -0.3% over the last month.
  • DJI: Closed at 16,775.74, with a 41.55 increase (0.2% change) over the last day, -0.9% over the last week, and 1.0% over the last month.
  • S&P 500: Closed at 1,936.16, with a 6.05 increase (0.3% change) over the last day, -0.7% over the last week, and 2.5% over the last month.

News Headlines

• China's Xi stresses energy industry reform: President Xi Jinping emphasized improving energy security and introducing more social capital into the energy industry.
• Shell sees huge profit potential in China: Shell has opened over 300 petrol stations in China and sees significant profit potential.
• Talisman to dispose more Asian assets: Talisman Energy plans to sell USD2.0b worth of assets in Indonesia, Malaysia, and Vietnam over the next 12 to 18 months.
• Malaysian natural rubber output down 13% MoM: Malaysia's natural rubber production fell by 13% month-over-month in April.
• Vietnam's Petrolimex cuts fuel prices: Vietnam's state-owned Petrolimex reduced diesel and kerosene prices but kept gasoline and fuel oil prices unchanged.
• Nan Ya Plastics 2-EH plant loading rate at 50%: Taiwan's Nan Ya Plastics has a 50% utilization rate at its 2-EH plant.
• PTT Phenol BPA plant to increase capacity utilisation to 100%: Thailand's PTT Phenol plans to increase its BPA plant's capacity utilization to 100%.
• Venezuela's PDVSA buys 10 new tugs: PDVSA has ordered 10 new tugs from Damen Shipyards, expected to be delivered by the end of July.

Latest Reports

• Perusahaan Gas Negara (Indonesia):

  • Rating: HOLD
  • Target Price: IDR5,500
  • Analysis: Earnings growth is expected to be weak with margin pressure. LNG operations in mid-2014 are expected to underpin gas volume over the next three years but at the cost of margins.

• SapuraKencana Petroleum (Malaysia):

  • Rating: BUY
  • Target Price: MYR5.30
  • Analysis: Made four significant gas discoveries in the SK408 field. A Gas Sales Agreement is likely to be signed by year-end.

• Phoenix Petroleum Philippines:

  • Rating: BUY
  • Target Price: PHP7.05
  • Analysis: Maintains BUY rating with a revised target price due to lower-than-expected 1Q14 volume sales. It is one of the best-performing stocks in Vietnam, up 25ppts over the PSEi return.

Valuation Comparison (Oil & Gas)

Analyst Contact Information

• HK/CHINA: Howard Wong, (852) 22680648, howardwong@kimeng.com.hk
• INDIA: Jigar Shah, (91) 2266232601, jigar@maybank-ke.co.in
• INDONESIA: Pandu Anugrah, (62) 21 2557 1137, pandu.anugrah@maybank-ke.co.id
• MALAYSIA: Liaw Thong Jung, (603) 22978688, tjiaw@maybank-ib.com
• PHILIPPINES: Bianca Solema, (63) 28498835, bianca_solema@maybank-atrke.com; Laura Dy-Liacco, (63) 28498840, laura_dyliacco@maybank-atrke.com
• SINGAPORE: Yeast Chee Keong, (65) 6432 1460, yeakcheeong@maybank-ke.com.sg
• THAILAND: Sutthichai Kumworachai, (66) 2658 6300 x 1400, sutthichai.k@maybank-ke.co.th
• VIETNAM: Le Nguyen Nhat Chuyen, (84) 844555888 × 8082, chuyen.le@maybank-kimeng.com.vn; Truong Quang Binh, (84) 4 44 555 888 × 8087, binh.truong@maybank-kimeng.com.vn

Valuation Comparison (Oil Services)

Notes

• NR = Not Rated
• UR = Under Review
• All forward-looking estimates and multiples for companies not under MayBank Kim Eng's coverage are from Bloomberg consensus.
• Average multiples and yields are weighted by market capitalization.