by NUR HAZIQAH A MALEK / pic by TMR FILE PIX
Petronas Gas Bhd (PetGas) registered foreign-exchange (forex) gains and higher share of profit from a joint venture to file a 6.67% year-on-year (YoY) increase in net profit to RM515.46 million, or 26 sen earnings per share for its first quarter ended March 31, 2019 (1Q19).
The company declared an interim dividend of 16 sen a share, payable on June 27, 2019.
The natural gas infrastructure and utility noted that the unrealised forex gain of RM52.5 million rose on the hedge accounting discontinuance on US dollar lease liabilities for floating storage units at the group’s liquefied natural gas (LNG) regasification terminal at Sungai Udang in Melaka.
The downstream arm of Petroliam Nasional Bhd (Petronas) also completed its Air Separation Unit (ASU) project in Pengerang, Johor, which raised its profit share.
PetGas MD and CEO Kamal Bahrin Ahmad noted with the ASU project’s completion, the group is actively exploring new growth opportunities.
“Our focus in 2019 is to ensure smooth implementation of incentive-based regulation (IBR), as we open our Peninsular Malaysia pipeline network and LNG regasification terminals to gas suppliers, while sustaining excellent plant reliability and delivery at all our assets,” he said.
PetGas’ revenue for the period increased by 1.24% YoY to RM1.37 billion on higher revenue from its gas processing and utilities segments, attributable to higher reservation charge under the second-term Gas Processing Agreement (GPA) and upward fuel gas price revision respectively.
Its gas transportation and Pengerang LNG regasification segments posted lower revenues under the IBR. Moving forward, the group expects the approved tariffs for gas transportation and regasification services for Pilot Regulatory Period in 2019 to affect its corresponding business’ segment revenues.
Both segments are anticipated to continue contributing positively to PetGas’ earnings, while its gas processing segment is expected to deliver improved earnings pursuant to the higher fixed reservation charge under the second term of the 20-year GPA effective from 2019 until 2023.
PetGas recently announced its new offering of gassing up and cooling down services at LNG Regasification Gas Terminal in Pengerang, as well as its intention to build an additional nitrogen generation unit in Kertih, Terengganu, for new customers.
The company secured two longterm agreements to supply electricity and steam to an international company based in Gebeng Industrial Park, Pahang, for the quarter .
Its share price ended higher by 0.49% yesterday at RM16.34 after having swung between an intraday high at RM16.54 and low at RM16.20.