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GAS [BUY +22.6%] - Higher oil price amplifies impact of Wild Orchid gas field - Update

We raise our target price for GAS by 33.6% mainly due to: 1) a 7% higher oil price assumption to USD65/bbl leading to a 15% higher average NPAT across forecast period (2019-2025) and 2) a 272 bps decline in WACC due to lower risk-free rate and expected higher debt structure. 2018 recurring NPAT is estimated to grow 20.2% YoY due to 5.0% higher sales volume and 5.0% and 11.5% YoY rises in fuel oil price and LPG price, respectively.