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The annual results for PETRONAS Gas Berhad (KLSE:PETGAS) were released last week, making it a good time to revisit its performance. It was a pretty mixed result, with revenues beating expectations to hit RM6.2b. Statutory earnings fell 7.3% short of analyst forecasts, reaching RM0.83 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for PETRONAS Gas Berhad
After the latest results, the consensus from PETRONAS Gas Berhad's twelve analysts is for revenues of RM5.85b in 2023, which would reflect a discernible 5.0% decline in sales compared to the last year of performance. Statutory earnings per share are predicted to ascend 16% to RM0.96. Yet prior to the latest earnings, the analysts had been anticipated revenues of RM5.75b and earnings per share (EPS) of RM0.96 in 2023. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
There were no changes to revenue or earnings estimates or the price target of RM18.06, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on PETRONAS Gas Berhad, with the most bullish analyst valuing it at RM20.60 and the most bearish at RM16.40 per share. This is a very narrow spread of estimates, implying either that PETRONAS Gas Berhad is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the PETRONAS Gas Berhad's past performance and to peers in the same industry. We would highlight that sales are expected to reverse, with a forecast 5.0% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 2.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - PETRONAS Gas Berhad is expected to lag the wider industry.