KUALA LUMPUR: Petronas Gas Bhd (PetGas), anchored by long-term contracts and stable revenue streams, does not expect to be impacted by the prevailing market challenges, its managing director and CEO Kamal Bahrin Ahmad says.
He said the company’s strong operational performance and robust business model with Regulatory Period 1 (RP1) tariffs provided certainty on revenue for the next three years.
“With majority of the group’s business being fully secured by long-term contracts and stable revenue streams, PetGas is not expected to be impacted by the prevailing uncertainties, ” he said in a statement issued after its AGM.
“Moving forward, our aim remains to be the solutions partner to our existing customers. While sustaining good operational performance at all of our assets, we are committed to ensure timely project completion to fulfill our commitment to our new customers, ” Kamal Bahrin added.
PetGas’ profit after tax rose by 5% to RM2bil in the financial year ended Dec 31,2019. With higher profits and strengthened balance sheet, the group declared total dividends of 82 sen per share for the year including a special dividend of 10 sen per share. This translates to a dividend payout ratio of 84% compared to 79% in 2018, the highest ever in history.
It said the group has proven to be a capable and prudent operator, through a flawless transition from an unregulated into a new Third Party Access (TPA) regulated environment last year.
“Petronas Gas’ resilience was the result of operational and commercial excellence driven by our ongoing game plan – 301Q99 Pushing Forward.
“By adhering to this game plan and pushing forward with our growth initiatives, we continue to grow from strength-to-strength, becoming a leaner and more efficient organisation that is prepared for market liberalisation and the accompanying challenges, ” he said.
Kamal Bahrin said despite a slowdown in energy demand and business operations in Malaysia as well as having to operate at a minimum workforce due to Covid-19 pandemic and the movement control order, the group continued to run its operations safely and effectively during these unprecedented times, ensuring continuity of gas supply delivery to the nation and its people.
The virtual AGM was chaired by Petronas Gas chairman Adif Zulkifli, who is also Petronas’ executive vice-president and CEO upstream, together with Kamal Bahrin Ahmad and chief financial officer Shariza Sharis Mohd Yusof.