As what I expected, Hengyuan price continue to go up. Petronm also maintain its price and slow down its trend which is healthy sign
For this Aramco news, I found that Aramco willing to pay USD 2 billion for 30% stake on a 260kbpd capacity. If Aramco want to increase the stake to 100%, then it need to fork out USD 6.67 billion. From this news, we can know how valuable for Hengyuan for 156kbp capacity.
Even we go for 25% discount considering the the system is used or old, Hengyuan is still worth USD 1.6 Billion = RM7.16 billion. This value still more than double compared to current Hengyuan market capital.
Even we go for 25% discount considering the the system is used or old, Hengyuan is still worth USD 1.6 Billion = RM7.16 billion. This value still more than double compared to current Hengyuan market capital.
Some mistake from the above calculation. From USD 6.67 for 256kbpd capacity, Hengyuan 156kbpd should worth USD4 billion. If we only take 25% value from USD4 billion, Hengyuan still worth USD1 billion = RM4.3 billion. RM4.3 billion still much higher than current market capital of Hengyuan
I may write a report tonight for petron profit estimation from phillipines result if got time.
FYI, I have added a new point in summary of Petronm part 5 article. Pls check again
Petronm PE will go lower after Q2 result, it will go even lower after Q3 result as Q3'16 is relatively weak result
Actually Petronm free cash flow from operation is RM400 mil++ in 2016. My part 5 article mentioned free cash flow of RM300 mil is the average for the past 3 years. Last year capex (48mil) is lower compared to 2015 (68 mil), thus FCF is higher
Shell Europe biggest refinery aims to restart at the end of Aug (mean closure near to 1 month, from original plan of 2 weeks)