PetGas’ full-year revenue increased slightly to RM5.7b from RM5.6b in FY20
by NUR HANANI AZMAN / pic by MUHD AMIN NAHARUL
PETROLIAM Nasional Bhd’s (Petronas)-listed subsidiaries have recorded a mixed set of quarterly results indicating the group’s fourth-quarter 2021 (4Q21), financial performance will have to depend more on its upstream business in an environment of stronger energy prices.
The group’s downstream gas business under Petronas Gas Bhd (PetGas) posted RM452.63 million in net profit for the 4Q which was 10% lower than RM503.35 million a year ago despite revenue rising 7.79% year-on-year to RM1.5 billion.
The lower net profit was due to higher operating costs by gas transportation and utilities segments, relating to internal gas consumption and fuel gas costs respectively.
The higher revenue was driven by the utility segment due to higher product prices in line with higher fuel gas prices coupled with higher electricity sales volumes following the commencement of electricity supply under the New Electricity Despatch Arrangement from August 2021 onwards.
PetGas’ full-year revenue increased slightly to RM5.65 billion from RM5.59 billion in FY20, mainly due to the higher revenue from the utilities segment amid higher contribution from steam sales to new customers.
“The regasification segment also contributed to the higher revenue for the year as a result of a new revenue stream from liquefied natural gas ancillary services.
PetGas’ board of directors has approved a fourth interim dividend payout of 22 sen per ordinary share amounting to RM435.3 million, and a special interim dividend of 10 sen per ordinary, the group’s filing to Bursa Malaysia yesterday stated.
PetGas’ LNG regasification terminals in Sungai Udang, Melaka (RGTSU), and Pengerang, Johor (RGTP), sustained their strong reliability performance at close to 100% during the year.
It noted the regasification segment revenue registered a slight growth of 1% or RM13.5 million with the introduction of new revenue streams from LNG reloading at RGTSU and truck loading at RGTP in FY21.
Its utilities plants achieved 100% product delivery reliability for steam, electricity and industrial gases during the year. The segment revenue grew by 2.8% or RM36.9 million on the back of higher sales volumes from new customers amid lower product prices.
PetGas said its total assets at RM19.2 billion was higher by 4.6% or RM841.5 million following higher cash and cash equivalents, and trade and other receivables.
Total equity attributable to shareholders of the company was higher by 3.7% or RM463.8 million at RM13.1 billion attributable to profit for the year partially offset by dividends paid.
“Total liabilities increased by 8.8% or RM470.5 million following drawdown from the new Islamic financing facility obtained and higher tax payable, trade and other payables and provision for decommissioning of property, plant and equipment during the year,” it added.
PetGas expects to remain resilient in 2022 despite the ongoing Covid-19 pandemic as the group’s business model and long-term contracts ensure steady revenue streams, particularly for gas processing, gas transportation and regasification business segments.
The group’s gas transportation and regasification business segments are anticipated to continue contributing positively to the group’s earnings under Regulatory Period 1 tariffs which are effective until Dec 31, 2022.
“The group’s gas processing segment is expected to remain stable on the back of its strong and sustainable income stream under the 2nd Term of the 20-year Gas Processing Agreement effective from 2019 until 2023,” it said.
Meanwhile, Petronas Dagangan Bhd’s (PetDag) net profit for the fourth quarter ended Dec 31, 2021 (4Q21), rose to RM137.19 million from RM89.21 million compared to the same quarter last year due to the reopening of more economic sectors under Phase 4 of the National Recovery Plan which has catalysed demand for fuel.
The higher average selling prices and sales volume contributed to an increase in PetDag’s revenue by 61% to RM7.06 billion against the corresponding quarter last year. PetDag MD and CEO Osman Rani said the lifting of travel bans and reopening of more economic sectors have accelerated demand for PetDag’s products and services in the 4Q.
“While the economic condition has gradually improved, the recovery rate in the 4Q was slightly hampered by the threat of the new variant, Omicron, and we foresee the impact would spill over into 2022. Nevertheless, the rapid rollout of a booster vaccination is expected to soften the impact.
“We remain cautiously optimistic going into 2022 and will leverage positive signs of increased spending by consumers, gradual market growth driven by an expansionary 2022 national budget, an improved crude oil price and the continuous easing and lifting of restrictions being the catalysts for a stronger economic recovery,” he said in a statement yesterday.
For the year ended Dec 31, 2021 (FY21), PetDag delivered a strong finish recording a net profit of RM529.75 million — almost double that of last year’s performance of RM275.96 million.
Revenue for the year stood at RM22.5 billion on the back of stronger performance, representing a 20% increase from FY20.
In anticipating the future shift to electric vehicles (EV), PetDag has begun strengthening its position in the EV market as a provider of fast-charging stations.
MISC Bhd — which is 51% owned by Petronas — recorded a lower net profit of RM461.7 million for the 4Q21 versus RM556 million net photo in 4Q20 on the higher operating loss incurred by its marine and heavy engineering division and other adjustments.
The shipping and logistics group’s revenue climbed 16.79% to RM3.09 billion from RM2.64 billion a year ago, underpinned by growth in revenue in all business segments, according to its filing to Bursa Malaysia yesterday.
As a result, the energy shipping group registered lower earnings per share of 10.3 sen for the period compared to 12.5 sen previously.
Petronas’ property business, KLCCP Stapled Group reported a net profit of RM70.33 million for 4Q21, compared to a net loss of RM41.84 million a year prior, as its retail and hotel segments rebounded following the transition to Phase 3 and subsequently Phase 4 of the National Recovery Plan.
The group, which comprises KLCC Property Holdings Bhd (KLCCP) and KLCC Real Estate Investment Trust (KLCC REIT), saw its revenue increase 14.3% to RM348.17 million from RM304.71 million.
The group declared a dividend of 12.6 sen per unit — comprising 6.83 sen for KLCC REIT and 5.77 sen for KLCC Property — to be paid on Feb 28, 2022. This brings total dividends to 33.6 sen for the full financial year ended FY21.
Petronas holds 64.68% of KLCCP.
Petronas Chemicals Group Bhd is yet to release its 4Q but the company had a very strong nine months of 2021.