Bank of America Securities: It is expected that PETROCHINA (00857) annual contracted gas price will increase by 2% to 5% year-on-year.

Bank of America Securities released a research report stating that it is expected that PETROCHINA (00857) will see a year-on-year increase of 2% to 5% in annual contract gas prices. This move is in line with expectations, but if spot prices continue to remain high for a longer period, it may further push up prices. Increased cost pressures typically squeeze dealers' profit margins, so Bank of America Securities holds a cautious view on the industry. The bank noted that a 2% decrease in unit profits could result in a 4% to 5% decrease in earnings for HK & CHINA GAS (00003) and ENN ENERGY (02688), while earnings for CHINA RES GAS (01193) could fall by 8% to 9%.