Petronas Gas net profit weighed down by Kimanis Power


  • Corporate News
  • Tuesday, 19 Feb 2019

PetGas said the losses from KPSB(file pic shows Kimanis Power plant) were due to a de-recognition of deferred tax assets (DTA) in relation to certain tax benefits, which now have a seven-year utilisation limit under the new Finance Act 2018. Its net profit rose just 1% to RM1.81bil from RM1.79bil in FY17.

PETALING JAYA: Petronas Gas Bhd (PetGas) posted a marginal increase in net profit to RM1.81bil for its financial year 2018 ended Dec 31 (FY18), weighed down by a share of losses from joint-venture company Kimanis Power Sdn Bhd (KPSB).

PetGas said the losses from KPSB were due to a de-recognition of deferred tax assets (DTA) in relation to certain tax benefits, which now have a seven-year utilisation limit under the new Finance Act 2018.

Its net profit rose just 1% to RM1.81bil from RM1.79bil in FY17. “Profit for the year rose 5% to RM1.9bil in tandem with a higher profit before tax of RM2.4bil.

“Excluding the impact of the DTA from KPSB, profit for the year would be higher by 11.9% or RM215.6mil,” it said.

Revenue increased 12.3% to a historic high of RM5.5bil from RM4.9bil, driven by successful full-year operations of the group’s liquefied natural gas regasification terminal in Pengerang.

Its earnings before interest, tax, depreciation and amortisation was higher by 13.4% to RM3.6bil in line with higher contributions from the group’s regasification segment.

PGas’ board of directors have approved a fourth interim dividend of 22 sen per share amounting to RM435.3mil for FY18.

For the fourth quarter, meanwhile, its net profit fell 34.6% to RM317.9mil from RM486.7mil previously. Revenue increased 4.9% to RM1.38bil from RM1.32bil. Earnings per share was at 16.07 sen compared with 24.60 sen before.

To recap, its 60%-owned KPSB issued a notice of arbitration on March 24, 2017 to Sabah Electricity Sdn Bhd (SESB) in connection with disputes on power purchase agreements entered into between the parties.

Subsequent to the issuance of the notice of arbitration, KPSB had on Sept 12, 2017 filed its statement of claim for an estimated sum of RM83.38mil plus interest. SESB filed its statement of defence and counterclaim on Nov 2, 2017, amounting to RM228.82mil plus interest.

“In pursuing the arbitration matter, both parties are currently at the inspection and discovery of documents stage and the tribunal hearing is scheduled to be held in November,” it said.

On the outlook, PetGas said the Energy Commission had approved the tariffs for the gas transportation and regasification services for 2019.

“While the tariffs are expected to affect the group’s transportation and regasification business segment revenues in 2019, both segments are anticipated to continue contributing positively to group earnings.

Its gas-processing segment is expected to deliver improved earnings.

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