PGAS reported 1H20 net profit of USD6.8 million or declining 88% YoY which means operational results still below our expectations. However, 1H20 distribution segment performed well with spread of USD2.3/MMBTU, higher than 1H19. We maintain our 2020-2022F earnings estimate and expect 2020F distribution spread to hover at USD1.7-2.0/MMBTU. Hence, we retain our BUY recommendation for PGAS.
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