Monday, May 21, 2012

IPO ... Gas Malaysia


Gas Malaysia Bhd, part of an energy distributor linked to Malaysian billionaire Syed Mokhtar Al- Bukhary, wants to raise about RM734 million (US$234 million) in an IPO.

Existing stockholders, including MMC Corp, plan to sell 333.8 million shares with an indicative price of RM2.20 each for individual investors.

The three major shareholders of Gas Malaysia Bhd will receive a total of RM734mil from the sale of their shares in the former's impending initial public offering (IPO).

Gas Malaysia's IPO will entail only an offer of sale of 333.8 million shares at RM2.20 a piece.

The three main owners of Gas Malaysia stock are MMC-Shapadu (Holdings) Sdn Bhd (55%), Tokyo Gas-Mitsui & Co Holdings Sdn Bhd (25%) and Petronas Gas Bhd (20%). The three will rake in RM403mil, RM183.6mil and RM146.8mil respectively from the sale of Gas Malaysia shares.

Post IPO, MMC-Shapadu would see its stake reduced to 40.7%, while Tokyo Gas-Mitsui at 18.5% and Petronas Gas with a 14.8% stake.

MMC-Shapadu is a 76% owned subsidiary of MMC Corporation Bhd, while Shahpadu Corporation Sdn Bhd owns the rest of the stake, a company that dabbles in a diverse range of businesses ranging from oil and gas to property development.

In February 2012, Gas Malaysia signed a gas supply agreement with Petronas for the supply of 492 million standard cubic per day (mmscfd), a 29% increase from its previous supply of 382 mmscfd. The new agreement starting January 2013 will be for a duration of 10 years with an option to renew for another five years.

For its financial year ended 2011, the company hit a revenue of RM2bil from RM1.8bil recorded previously, driven by the gas tariff revision announced by the government, which took effect on June 1, 2011, in addition to increase in sales volume.

However, its net profit decreased by 23% to RM229mil in 2011 from RM298mil recorded in the previous year due to the new gas tariff, which resulted in Gas Malaysia's average margin declining by 48.9% to RM2.02 per mmBtu, or just 12.5% as margins compared to 26.3% recorded previously.

The company intends to pay out 100% of its net profit for its financial year ending Dec 31, 2012, and subsequently targets a payout ratio of not less than 75% of its net profit moving forward.

Established in 1992 to provide an alternative source of energy to the country, it sell, market and distribute natural gas as well as construct and operate the Natural Gas Distribution System in the peninsular.

Gas Malaysia is the sole licensed seller of natural gas in Peninsular Malaysia. It also has rights to supply liquefied petroleum gas in the region.

It operates a network of approximately 1,800 km of pipelines throughout the peninsular, and source its natural gas supply from Petronas via the Peninsular Gas Utilisation Transmission System which is owned and operated by Petronas Gas Bhd.

While consumption of natural gas in Malaysia has grown from about 315 bcf (1 bcf equals to 1 trillion BTUs) in 1990 to an estimated 1,260 bcf in 2010, the ability to satisfy this demand has been constrained since 2007 due to the shortage of supply.

However, with the completion of the liquefied natural gas regasification facility in Malacca, it will provide a new source of allocation to Peninsular Malaysia. In addition, the volume of gas from the North Malay Basin project will also help sustain the natural gas supply to customers in the Peninsula.

Gas Malaysia is a strong dividend-recurring stock with more potential upside with the new Petronas contract and its commitment to pay most of its profit back to shareholders.

In terms of growth for Gas Malaysia, its infrastructure is already quite well developed with its extensive reach to most industrial estates in the peninsular that entails little capital expenditure to expand its operations.

39 comments:

Anonymous said...

buy tramadol online 100mg of tramadol high - buy tramadol online tennessee

Anonymous said...

buy xanax valium online florida buy alprazolam 0.25mg - buy xanax online india

Anonymous said...

buy tramadol online tramadol 50 mg dogs side effects - buy tramadol for dogs

Anonymous said...

cheap tramadol tramadol online no prescription cod - tramadol hcl on drug test

Anonymous said...

buy tramadol online tramadol hcl 50 mg webmd - tramadol high erowid

Anonymous said...

buy tramadol online cheap tramadol 50mg how many to take - order tramadol online pharmacy

Anonymous said...

buy tramadol online tramadol for dogs dosage per pound - long will tramadol high last

Anonymous said...

order alprazolam no prescription order xanax online uk - xanax cures anxiety

Anonymous said...

buy tramadol online buy tramadol hcl - buy tramadol online no prescription mastercard

Anonymous said...

tramadol online cod purchase tramadol generic ultram - tramadol 50 mg headache

Anonymous said...

buy generic tramadol online normal dosage tramadol hcl - tramadol al 100mg nebenwirkungen

Anonymous said...

generic xanax xanax xr generic pictures - mastercard xanax online no prescription

Anonymous said...

buy tramadol online get tramadol online - tramadol joint pain

Anonymous said...

xanax online generic xanax s 900 - how long will 1mg xanax last

Anonymous said...

buy tramadol online tramadol addiction stories - tramadol 100 mg gotas

Anonymous said...

tramadol without prescription tramadol 50mg to get high - buy tramadol online missouri

Anonymous said...

buy tramadol ultram tramadol and high - signs of tramadol addiction

Anonymous said...

tramadol generic tramadol buy cheap - tramadol hcl 93

Anonymous said...

carisoprodol online does carisoprodol 350 mg have codeine - carisoprodol dosage

Anonymous said...

generic cialis tadalafil how quickly does cialis daily work - price viagra versus cialis

Anonymous said...

tramadol 100mg buy tramadol us pharmacy - tramadol purchase fedex

Anonymous said...

alprazolam drug can you buy xanax cancun - drug interactions xanax tums

Anonymous said...

buy cialis online cialis vs cialis professional - cialis kidney stones

Anonymous said...

cialis online cheapest cialis online us - buy cialis pay with paypal

Anonymous said...

xanax online xanax and alcohol detox - order xanax online canada

Anonymous said...

cheap cialis 20mg cialis daily dosage effectiveness - cialis online legale

Anonymous said...

cialis online cialis for women - buy cialis online with mastercard

Anonymous said...

buy tramadol tramadol used opiate withdrawal - tramadol 100 mg recreational

Anonymous said...

order tramadol online mastercard tramadol addictive properties - buy tramadol forum

Anonymous said...

http://landvoicelearning.com/#74967 ultram tramadol withdrawal symptoms - tramadol no prescription overseas

Anonymous said...

learn how to buy tramdadol buy tramadol 180 online - tramadol 50 mg for dogs

Anonymous said...

buy tramadol online does tramadol hcl 50 mg get you high - buy tramadol online with visa

Anonymous said...

http://buytramadolonlinecool.com/#61458 buy cheap tramadol online cod - tramadol 50mg dosage

Anonymous said...

tramadol online cod tramadol que contiene - buy tramadol online legally

Anonymous said...

buy tramadol online tramadol high yahoo answers - tramadol dosage buzz

Anonymous said...

http://staam.org/#92453 tramadol hydrochloride dosage - tramadol overnight delivery mastercard

Anonymous said...

http://ranchodelastortugas.com/#50698 fake gg249 xanax pills - what do 2mg xanax look like

Anonymous said...

buy tramadol online buy tramadol legal - tramadol hcl vs norco

Anonymous said...

xanax medication 2mg xanax to sleep - xanax alcohol overdose symptoms