RHBInvest Research Sector Call

Sector Call

Oil & Gas : Petronas 4QFY11 Results- Overweight

Sector Update

• Petronas’ 4QFY3/11 YTD net profit of RM54bn was up 36.1% yoy mainly on the back of: 1) Higher realised prices of its liquefied natural gas (LNG), petroleum products and crude oil; and 2) Higher sales volume of its petroleum products and petrochemicals. Cumulative tax exempt dividend for 31 March 2011 amounts to RM42bn.

Downstream segment does best on a YTD yoy basis primarily due to:

1) Improved refining margins; and

2) Higher margin recorded by the petrochemical business.