KUCHING, Nov 15: Petronas Gas Berhad (PGB or the Group) closed the third quarter of 2022 with Profit After Tax (PAT) of RM1.30 billion. An interim dividend of 18 sen per ordinary share was also declared, similar to the dividend declared in Q3 2021.
According to a press statement, PGB maintained its world-class reliability in the third quarter of 2022 across all its plants and facilities, which saw steady earnings from the Group’s long-term contracts covering its gas processing, gas transportation and regasification segments. The Group’s average sales of gas delivered have picked up, driven primarily by robust domestic demand.
In the first nine months of 2022, PGB’s revenue increased by nine per cent to RM4.53 billion compared to RM4.15 billion recorded in 2021, mainly driven by higher revenue from the utility segment on the back of higher product prices and higher electricity sales volume recorded.
Gross profit was lowered by 11 per cent from RM2.10 billion to RM1.88 billion due to higher fuel gas costs, impacting operating costs across all segments. In tandem with lower gross profit, unfavourable foreign exchange movement and prosperity tax, PAT decreased by 20 per cent to RM1.30 billion.
Quarter-to-quarter, revenue for Q3 2022 improved approximately 10 per cent from RM1.43 billion to RM1.56 billion, mainly from higher utility revenue due to higher product prices in line with higher fuel gas prices.
However, gross profit declined by 19 per cent from RM793 million to RM644 million due to higher operating costs across all segments, mainly related to fuel gas and internal gas consumption costs. In tandem with the lower gross profit and unfavourable foreign exchange movement, PAT decreased by 28 per cent to RM443 million.
Commenting on the Group’s performance, managing director and chief executive officer Abdul Aziz Othman said: “The high energy prices and strong performing US dollar continue to influence PGB’s financial results.
“Nevertheless, we are committed to effectively managing our operations and assessing growth opportunities to mitigate any adverse outcome from these external factors. PGB remained profitable despite the challenging market environment that we are currently in,” he said.
PGB is under the Incentive-based Regulation (IBR) framework administered by Malaysia’s Suruhanjaya Tenaga (ST) and will soon enter the second regulatory period (RP2 2023-2025). however, the decision on tariff has yet to be announced.
“As a gas infrastructure company, our business is based on capacity booking, which currently is underpinned by long-term contracts. We have submitted our proposal with several recommendations as part of our effort to minimise the risk from gas price volatility and unfavourable foreign exchange movements. We shall wait for ST’s response on this,” Abdul Aziz said. — DayakDaily
