Bank of America Securities Forecasts 2-5% Annual Contract Gas Price Increase for PetroChina
Stock News
Mar 17
Bank of America Securities has issued a research report predicting that PetroChina's (00857) annual contract gas price will rise by 2% to 5% year-on-year. This adjustment aligns with market expectations, although sustained high spot prices could potentially create further upside. The report notes that increased cost pressures typically compress distributors' profit margins, leading the firm to maintain a cautious outlook on the sector. The analysis indicates that for every RMB 0.02 decline in unit profit, HK & China Gas (00003) and ENN Energy (02688) would see earnings decrease by 4% to 5%, while China Res Gas (01193) would experience an 8% to 9% decline in profitability.
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