KUALA LUMPUR, Aug 26 (Bernama) -- PETRONAS Gas Berhad (PGB or the Group) closed the first half of 2022 with Profit After Tax (PAT) of RM853 million, with an interim dividend of 16 sen per ordinary share for Q2 FY2022, similar to that announced for Q2 FY2021.
 
PGB sustained its world class operational performance in delivering products and services during first half of 2022. The Group’s long-term contracts under Gas Processing, Gas Transportation and Regasification segments also continue to ensure stable earnings. Additionally, the recent Utilities contract renewals have resulted in improved pricing structure to allow pass-through costs.
 
Challenging external environment on the back of increasing fuel gas price and unfavourable foreign exchange movement has impacted PGB’s bottom line.
 
PGB’s six-month revenue, as of 30 June 2022, stood at RM2.96 billion, recording a 9% improvement as compared to RM2.72 billion recorded in 2021. This was mainly driven by higher revenue from the Utilities segment in line with higher product prices and higher sales volume. Gross profit however declined by 6% from RM1.31 billion to RM1.24 billion with the Utilities segment recording lower contributions because of tighter margins following higher fuel gas costs. Profit for the first half of the year declined by 15% in tandem with lower gross profit, coupled with impact of unfavourable foreign exchange movement.
 
Comparing Q2 2022 against the same quarter last year, PGB’s revenue improved from RM1.38 billion to RM1.51 billion mainly contributed by higher revenue from Utilities segment. The Group’s gross profit increased from RM600 million to RM623 million with Regasification and Gas Processing segments recording lower operating costs, negated by lower contribution from Utilities segment on the back of tighter margin following higher fuel gas price. Profit for the quarter reduced by 10% from RM464 million to RM416 million in tandem with the lower gross profit.
 
Commenting on the Group’s performance, Managing Director and Chief Executive Officer Abdul Aziz Othman said, “The current high fuel gas price continues to raise the cost of doing business despite our excellent operational performance. Looking ahead, we anticipate continued impact to our financials from the higher fuel gas prices and unfavourable foreign exchange. To mitigate these challenges, we have improved commercial terms in our Utilities contracts and launched initiatives to reduce forex exposure.”
 
“At the same time, we expect the discussions with Suruhanjaya Tenaga on Regulatory Period 2 tariffs to conclude soon for 2023. In expanding PGB’s business, we are enroute towards completing and achieving Final Investment Decision (FID) for several projects later this year,” Abdul Aziz added.
 
In efforts to fulfil customers’ needs towards continued value creation, PGB recently completed the southern PGU debottlenecking project in May 2022, two months ahead of initial schedule. The project, which began in May 2021 was launched to expand pipeline capacity and meet increasing demand in the southern region of Peninsular Malaysia.
 
Furthermore, the Group also awarded an EPCC contract in June 2022 to construct approximately 10km lateral pipeline and metering station to supply natural gas to a paper making plant located in Banting Industrial City. The new pipeline extension is expected to meet the demand and reliability of supply to the customer by August 2023.

Issued by
PETRONAS Gas Berhad
 
Source: PETRONAS Gas Berhad

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Name: Florence Oh
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--BERNAMA