KUALA LUMPUR, Nov 15 (Bernama) -- PETRONAS Gas Berhad (PGB or the Group) closed the third quarter of 2022 (Q3 FY2022) with Profit After Tax (PAT) of RM1.30 billion. An interim dividend of 18 cents per ordinary share was also declared for Q3 FY2022, similar to the dividend declared in Q3 FY2021.

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 gas delivered has picked up, driven primarily by robust domestic demand.

In the first nine months of 2022, PGB’s revenue increased by 9% to RM4.53 billion as compared to RM4.15 billion recorded in 2021, mainly driven by higher revenue from the Utilities segment on the back of higher product prices and higher electricity sales volume recorded. Gross profit was lower by 11% from RM2.10 billion to RM1.88 billion due to higher fuel gas cost, impacting operating costs across all segments. In tandem with lower gross profit, unfavourable foreign exchange movement and prosperity tax, PAT decreased by 20% to RM1.30 billion.

While from a quarter-to-quarter view, revenue for Q3 FY2022 improved approximately 10% from RM1.43 billion to RM1.56 billion, mainly from higher Utilities revenue as a result of higher product prices in line with higher fuel gas price. Gross profit nevertheless declined by 19% 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% 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 manage our operations and assess growth opportunities to mitigate any adverse outcome from these external factors. PGB remained profitable despite the challenging market environment that we are currently in.”

PGB is under the Incentive-based Regulation (IBR) framework administered by Malaysia’s Suruhanjaya Tenaga (ST). PGB will soon enter into the second regulatory period (RP2 2023-2025) however decision on tariff has yet to be announced. “As a gas infrastructure company, our business is based on capacity booking, in which currently are 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 added.

Issued by

PETRONAS Gas Berhad

Source: PETRONAS Gas Berhad

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--BERNAMA