Sector update: Energy 3Q20 preview
13/10/2020 - 08:17
Rainy season = hydropower turnaround.
PC1 is exposed to this recovery given its new hydropower capacity.
Thermal power in 3Q20 likely to be weak given hydropower mobilization amidst weaker overall demand due to COVID-19.
POW likely struggled in 3Q20.
NT2 is carrying out medium maintenance during late 3Q20-early 4Q20.
Hydropower is recovering from the low base of 2019. The El Nino-driven drought extended to 1H20, suggesting decent growth in 1H21.
PC1 is most exposed to this hydropower recovery. The company has added 48.2% to its hydropower capacity this year.
POW and NT2 may post weak 3Q20 results, but they should recover in 2021 given the low base and stabilized gas input supply.
Energy 3Q20 Earnings Preview edited