Bank of America Securities: Expects China National Petroleum annual contract gas prices to rise 2% to 5% year-over-year

SadMoneyMeow · 2026-03-18T04:28:12+00:00

BofA Securities predicts China's annual contract gas prices will rise 2% to 5%, with potential for further increases if spot prices remain elevated. Cost pressures are expected to compress distributor margins, and the firm maintains a cautious stance on the sector, as declining unit profits will impact related companies' earnings.

SadMoneyMeow

2026-03-18 04:28:12

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Bank of America Securities released a research report stating that the annual contracted gas price for China Petroleum (00857) is expected to increase by 2% to 5% year-on-year. This aligns with expectations, but if spot prices remain high for a longer period, there could be further upside potential. Increased cost pressures typically compress profit margins for distributors, so Bank of America Securities maintains a cautious outlook on the industry. The bank indicated that a decrease of 2 fen in unit profit would lead to a 4% to 5% decline in profits for Hong Kong China Gas (00003) and China Gas Holdings (02688), while China Resources Gas (01193) would see an 8% to 9% decrease.

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