KUALA LUMPUR, May 28 (Bernama) -- PETRONAS Gas Berhad ended Q1 FY2019 on a strong note with improved first quarter profit year-on-year, backed by strong plant performance and new remuneration terms for its Gas Processing business.
This was achieved amidst new tariffs for its Gas Transportation and Regasification businesses.
Revenue was higher at RM1.4 billion with high operating efficiencies across all businesses, supported by higher tariff from the company’s the Gas Processing Agreement (GPA) with PETRONAS.
Remuneration for the second term of the 20-year contract was revised commencing on 1 January 2019 to reflect the operating targets and planned expenditure for PGB’s Gas Processing business in the next five years. The first term of the GPA took effect on 1 April 2014.
Profit grew by 5% to RM531 million, taking into account a one-time foreign currency impact at one of the Group’s subsidiaries and higher share of profit from a joint venture company with the completion of the Group’s Air Separation Unit (ASU) project in Pengerang, Johor.
Comparing against the preceding quarter, Group revenue was comparable as higher Gas Processing revenue offset lower income from Gas Transportation and Regasification. Profit improved from RM342 million to RM531 million.
PGB also announced its first quarter dividend at 16 sen per share.
PGB Managing Director/Chief Executive Officer Kamal Bahrin Ahmad said: “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.
“Now that our ASU project is completed, we are also actively exploring new growth opportunities that would add further value to the Group,” he said.
Effective 1 January 2019, PGB has adopted new tariffs for its gas transportation and regasification services as determined by Suruhanjaya Tenaga under IBR. The IBR aims to provide a more level-playing field while attracting new players to enter the domestic gas market.
Implemented since January 2018, Malaysia’s gas market liberalisation opens the company’s gas transportation and regasification facilities to gas suppliers.
In a recent development, PGB announced its new offering of gassing up and cooling down services at LNG Regasification Gas Terminal Pengerang, as well as its intention to build an additional nitrogen generation unit at Kertih, Terengganu to serve new customers.
The company also recently secured two long-term agreements to supply electricity and steam to an international company based in Gebeng Industrial Park, Pahang.
About PETRONAS Gas Berhad PGB was incorporated in 1983 as a wholly-owned subsidiary of PETRONAS and listed on the main market of Bursa Malaysia on 4 September 1995. The Company is 60.66% owned by PETRONAS, while the remaining shares are held by other institutional investors and retail shareholders.
It is Malaysia’s leading Gas Infrastructure and Utilities company with core businesses in Gas Processing, Gas Transmission and Regasification. The Company processes natural gas piped from offshore fields and transports the processed gas via the Peninsular Gas Utilisation (PGU) pipeline network to PETRONAS’ customers in Malaysia and Singapore.
In addition, the Group also supplies steam, power and industrial gases for its customers at Kerteh Integrated Petrochemical Complex in Terengganu and Gebeng Industrial Area in Pahang.
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Corporate AffairsPETRONAS Gas Berhad Source: PETRONAS Gas Berhad FOR MORE INFORMATION, PLEASE CONTACT:Name: Nik Irwan Izanee Nik AbdullahTel: +60323925877 Email: irwaniz@petronas.com --BERNAMA 
