RH Petrogas

RH Petrogas: With the falling oil prices, average consensus target price of $1.00 should see downside risks if the street further revises down its oil price forecasts for FY15-16. As a gauge, RH Petrogas produced 4,130 barrels of oil equivalent per day (boepd) in FY13 and is expected to produce 4,300 boepd in FY14. On a net level, the group has an estimated margin of 3.2% and 7.7% in FY14 and FY15, respectively, based on an estimated oil price of US$80-100/bbl.