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KUCHING, Aug 25: Petronas Gas Berhad (PGB) closed the first half of 2023 with profit after tax (PAT) of RM944 million, a 10.7 per cent increase from the same period in 2022.
According to a media release today, the commendable performance continued to be underpinned by strong operational performance and further supported by higher profit contribution from joint venture companies, higher income from fund placement as well as lower tax expense.
The strong result demonstrates PGB’s resilience amidst challenging market conditions on the back of long-term contracts under Gas Processing, Gas Transportation and Regasification segments supported by consistent world class operational performance in delivering products and services.
The Group’s Gas Processing plants, pipeline network and LNG regasification terminals in Sg Udang, Melaka (RGTSU) and Pengerang, Johor (RGTP) have sustained strong reliability performances at close to 100 per cent throughout the first half of the year.
Comparing Q2 2023 against the same quarter last year, PGB’s revenue improved from RM2.96 billion to RM3.31 billion mainly contributed by higher revenue from the Utilities segment due to higher product prices, in line with the increase of fuel gas price based on Malaysia Reference Price (MRP). This is partially offset by lower tariff under Gas Transportation and Regasification segments.
The Group’s gross profit declined by 3 per cent from RM1.23 billion to RM1.19 billion, attributable to higher operating expenses coupled with lower margin from Regasification segment. These were offset with higher contribution from Utilities segment in tandem with higher revenue as well as stronger margin as a result of a more balanced cost pass-through to customers which reduced the business exposure to gas price volatility.
Despite the lower gross profit, PAT improved by 10.7 per cent from RM853 million to RM944 million on the back of higher profit contribution from joint venture companies and higher interest income from investments.
In addition, the PAT also improved due to lower exposure towards foreign exchange movement following early settlement of USD lease liabilities for floating storage units at RGTSU. This is further supported by lower tax expense resulting from no imposition of Prosperity Tax as compared to corresponding period in 2022.
PGB also declared an interim dividend of 16 sen per share, equivalent to RM316.6 million, similar to the same quarter last year.
Managing director and chief executive officer Abdul Aziz Othman commented, “The strong 1H FY2023 results highlights our business resilience in sustaining our performance in the course of challenging market conditions. It also reflects our continuous focused endeavours in improving operational efficiency and cost optimisation.”
Abdul Aziz emphasised that PGB’s focus will be on safety, reliability, and operating cost to ensure sustainable revenue with a healthy margin, while also looking at opportunities for growth and value creation.
The recently launched National Energy Transition Roadmap (NETR) Part 1, he continued, reaffirms the importance and relevancy of the natural gas business for Malaysia.
“The identified catalyst projects and initiatives provide several opportunities for PGB in our pursuit to grow green portfolio which includes renewables and carbon capture and storage, supporting our target to achieve Net Zero Carbon Emission by 2050,” he added. — DayakDaily
