Petronas Gas records 1Q net profit of RM368.12mil

KUALA LUMPUR: Petronas Gas Bhd recorded a 28.6% year-on-year (y-o-y) drop in net earnings to RM368.12mil for the first quarter ended March 31, 2020, due to unrealised foreign exchange loss.

The group declared a first interim dividend of 16 sen per share, payable on June 30, 2020.

According to Petronas Gas , profits were negatively impacted by the ringgit sliding against the US dollar, which resulted in unrealised foreign exchange loss on translation of RM152mil relating to US dollar-denominated liabilities.

This compared to a gain of RM57.7mil in the comparative quarter.

The group's revenue rose 2.1% y-o-y to RM1.4bil on higher contributions due to the new tariffs for Regulatory Period 1 (RP1) that took effect on Jan 1, 2020.

The gas transport segment recorded slightly improved revenue of RM292.9mil as the higher RP1 tariff offset the lower revenue from the transfer of Sabah-Sarawak Gas Pipeline operations to Petronas Carigali Sdn Bhd as well as the transfer of Miri and Bintulu gas distribution assets to a third-party.

Meanwhile, the regasification segment's revenue rose 14.1% to RM344.9mil in line with the higher tariffs.

The group's gas processing business also experienced a 1.5% increase in revenue to RM430.5mil due to the higher internal gas consumption performance incentive reflective of efficient plant operations.

The positive performance was partially offset by lower revenue from the utilities segment on a fall in electricity sales volume.

"Utilities revenue declined by 6.7% or RM23.7 million, mainly attributable to lower electricity offtake," it said.

Moving forward, the group does not expect the Covid-19 pandemic to significantly impact its overall earnings as its business model and long-term contracts ensure steady revenue streams.

"The group’s transportation and regasification business segments are anticipated to continue contributing positively to the Group’s earnings under the RP1 tariffs.

"The group’s gas processing segment is expected to remain stable on the back of its strong and sustainable income stream under the 2nd term of the 20-year gas processing agreement effective from 2019 until 2023," it said.
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