KUALA LUMPUR: Petronas Gas Bhd, which posted strong earnings in the second quarter ended June 30,2020, declared dividends totalling RM1.30bil.
It announced on Wednesday its board of directors had approved a second interim dividend of 16 sen per share amounting to RM316.60mil and a special interim dividend of 50 sen per share amounting to RM989.4mil for financial year ending Dec 31.
Petronas Gas saw its net profit increase by 8.8% to RM547.09mil in the second quarter ended June 30,2020 from RM502.89mil a year ago due to higher unrealised foreign exchange gain and higher share of profit from a joint venture.
In its statement to Bursa Malaysia on Wednesday, it recorded unrealised foreign exchange gain on translation of US$ liabilities totalling RM20.5mil due to favourable movement of the ringgit against USD during the quarter, compared to a loss of RM4.8mil a year ago.
Petronas Gas reported revenue rose by just 1.4% to RM1.39bil from RM1.38bil mainly contributed by higher revenue from regasification segment in line with new tariffs for Regulatory Period 1 (RP1) effective Jan 1, offset by lower revenue from utilities segment as a result of lower electricity sales volume.
Earnings per share were 27.65 sen compared with RM25.42 sen.
In the first half, its net profit declined by 10% to RM915.22mil from RM1.02bil in the previous corresponding period. Its revenue was slightly higher at RM2.79bil compared with RM2.74bil.
Petronas Gas said the group’s gas processing plants recorded close to 99% reliability. Segment revenue was comparable at RM429.7mil from a year ago.
Segment results grew by 14.6% or RM31.7mil on the back of lower operating costs attributable to lower depreciation expense as a result of fully depreciated assets and lower maintenance costs.
As for gas transportation, the group’s pipeline network continued to achieve close to 100% reliability.
“Suruhanjaya Tenaga has approved regulated tariff of RM1.129/GJ for the Peninsular Gas Utilisation (PGU) pipeline network which is applicable for Regulatory Period 1 (RP1) from Jan 1,2020 to Dec 31,2022.
“This compares to regulated tariff of RM1.072/GJ in 2019 under Pilot Regulatory Period (PRP). The higher RP1 tariff follows the inclusion of IGC cost recovery, which is a pass-through cost. Prior to RP1, IGC cost was borne directly by the shipper, ” it said.
As for its LNG regasification terminals in Sg. Udang, Melaka (RGTSU) and Pengerang, Johor (RGTP), their performance was at close to 100% during the quarter.
Segment revenue grew by 13.6% or RM42mil in line with higher tariffs. Segment results increased by 9.5% or RM6.5mil due to higher contribution from RGTP, offset by higher operating expenses, mainly utilities costs.
Petronas Gas pointed out that Suruhanjaya Tenaga approved regulated tariff of RM3.455/GJ and RM3.485/GJ for RGTSU and RGTP respectively.
For the utilities segment, it said revenue fell by 6.9% or RM24.4mil, mainly due to lower electricity sales as a result of lower offtake by customers during the quarter.
“Segment results were lower by 15.2% or RM9mil with lower contribution from electricity sales volume offset by lower depreciation and utilities cost of sales in line with lower production, ” it said.
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