Petronas Gas posts lower net profit for 4Q

by S BIRRUNTHA / pic TMR FILE

PETRONAS Gas Bhd’s (PetGas) net profit for the fourth quarter ended Dec 31, 2022 (4Q22) fell 8.9% to RM412.55 million from RM452.63 million a year ago, due to lower contribution from all segments following higher operating expenses, mainly fuel gas and internal gas consumption expenses.

However, the company registered a 9.1% increase in revenue to RM1.63 billion from RM1.5 billion previously, mainly driven by higher revenue from the utilities segment on the back of higher product prices.

Earnings per share for the quarter declined 8.83% to 20.85 sen from 22.87 sen in the previous quarter, according to its filing to Bursa Malaysia today.

The company has also declared a fourth interim single-tier dividend of 22 sen per ordinary share, with the ex-date on March 3, 2023 and the payment date on March 15, 2023.

For the full financial year of 2022 (FY22), PetGas net profit declined 17% to RM1.65 billion from RM1.99 billion registered in the previous financial year. Revenue, however, rose to RM6.16 billion from RM5.65 billion in FY21.

“PetGas recorded resilient financial performance for the full year 2022 amid a challenging external environment on the back of increasing fuel gas price and unfavourable foreign-exchange (forex) movement,” it said in its financial statement.

On its prospects, PetGas noted that the government through Energy Commission has approved the incentive-based regulation (IBR) tariffs for the regulatory period 2 for the gas transportation and regasification services which commencing from Jan 1, 2023 to Dec 31, 2025. 

It said while the new tariffs are expected to translate into lower group’s transportation and regasification business segment revenues, both segments are anticipated to continue contributing positively to the group’s earnings.

Meanwhile, PetGas said its gas processing segment is expected to remain stable on the back of long-term contracts.

It highlighted that the government has also announced the imbalance cost pass-through surcharge for the first half of 2023 (1H23) that will help to partly mitigate the adverse impact of elevating Malaysia Reference Price to the utilities segment performance which highly correlates with fuel gas price movement.

“The overall group performance for 2023 is expected to remain robust underpinned by the stable earning contracts while the volatility of the forex and gas price movement may also have an impact on the group’s result. 

“The group will continue its efforts to deliver operational excellence and focus on executing our growth plans to ensure a sustained level of returns to our shareholders,” it said.