PetGas 3Q net profit down 27%, declares 18 sen dividend

KUALA LUMPUR: Petronas Gas Bhd’s (PetGas) net profit fell 26.7% to RM425.8mil in the third quarter ended Sept 30 from RM580.8mil a year ago due to lower gross profit and unfavourable foreign exchange movement.

Revenue, however, rose by 9.6% to RM1.56bil against RM1.43bil last year mainly contributed by higher revenue from utilities segment as a result of higher product prices in line with higher fuel gas price.

Its earnings per share for the period fell to 21.52 sen from 29.35 sen previously.

The board of directors has approved a third interim dividend of 18 sen per ordinary share amounting to RM356.2mil in respect of the financial year ending Dec 31.

In the first nine months to Sept 30, PetGas posted a net profit of RM1.23bil, or 62.31 sen, down 20% from RM1.54bil, or 77.64 sen while revenue rose 9% to RM4.53bil against RM4.15bil last year.

PetGas said the higher revenue was mainly driven by higher revenue from utilities segment on the back of higher product prices and higher electricity sales volume recorded.

Commenting on its prospects, PetGas said the rise in Malaysia reference price (MRP), further weakening trend of the ringgit against the US dollar, and imposition of prosperity tax will continue to impact its overall performance.

“Even as the group contends with weakening trend of ringgit against US dollar and elevated fuel gas price, continuous efforts will be pursued to deliver operational excellence and ensure a sustained level of returns to our shareholders,” it said.

PetGas said gas and utilities demand is expected to improve as the country is transitioning into the endemic phase of Covid-19.

“Group’s performance in 2022 is expected to remain resilient on the back of long-term contracts which ensure steady revenue streams, particularly for gas processing, gas transportation, and regasification business segments.

“During the period, the group has renewed several long-term utilities’ contracts which improved the utilities segment margin for third quarter performance and consequently help to partly mitigate the adverse impact of higher fuel gas costs,” it added.