Investors mixed on Petronas-linked stocks ahead of earnings results

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KUALA LUMPUR (Feb 12): Shares of Petroliam Nasional Bhd-linked companies, which will be announcing their fourth quarter and full-year financial results ended Dec 31, 2014, within these few days, have been traded mixed on the exchange.

At 12.11pm, Petronas Chemicals Group Bhd was up 0.19% to RM5.25, with 467,100 shares changing hands.

Petronas Dagangan Bhd was down 4.87% to RM17.22 and Petronas Gas also fell 0.92% to RM21.58.

These counters are expected to release their latest quarter financial results in the next few days.

Petronas Chemicals (fundamental: 2.7; valuation: 1.2) and Petronas Gas (fundamental: 2.7; valuation: 0.9) are expected to announce their financial results between Feb 11 to 13, while Petronas Dagangan (fundamental: 1.8; valuation: 0.9) is expected to release its results today (Feb 12).

A dealer from a local investment bank told theedgemarkets that most investors were pessimistic about the financial results, on the back of declining crude oil prices.

“Most of the oil and gas counters, including Petronas-related ones, are not expected to release rosy results as the prices of crude oil and gas have been dipping in the previous quarter,

“Investors are also expecting a lower dividend payout as some of the management have already implied that earlier,” he said.

Meanwhile, another dealer said the investors were also  expecting oil prices to be lower in the future.

“With lower oil prices now, the management would probably be cutting their spending and capex. This would also mean lower profitability in the future,” he said.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)