PETALING JAYA: Petronas Gas Bhd
’s (PetGas) outlook for 2026 is expected to remain resilient, notwithstanding margin pressures, particularly in its utilities segment, due to higher fuel gas prices amid ongoing global geopolitical uncertainties.
The group said contributions from its gas transportation, regasification and gas processing segments are expected to continue providing earnings stability, underpinned by the regulated framework and stable long-term contracts.
Releasing its results for the first quarter ended March 31 (1Q26) for the financial year 2026 yesterday, PetGas recorded a healthy net profit of RM438.7mil, despite a slide of 6.4% year-on-year (y-o-y).
This was driven by a revenue of RM1.59bil, marginally lower y-o-y by 0.6%.
PetGas said its fractionally decreased turnover was mainly attributable to lower income from its utilities segment from lower product prices.
“This impact was cushioned by higher revenue from the gas transportation segment following upward tariff adjustment and increased contribution from the regasification segment arising from liquefied natural gas storage services at Pengerang, Johor, which commenced in August 2025,” the group said in a filing with Bursa Malaysia.
PetGas reported that its gross profit declined by 3.1% or RM17.6mil following lower revenue coupled with higher operating expenses, mainly driven by increased depreciation across all segments as well as higher level of repair and maintenance activities in the gas processing segment.
However, it said these impacts were cushioned by favourable fuel gas costs in the utilities segment in tandem with lower fuel gas prices.
The lower net profit for 1Q26 was primarily attributable to lower revenue and higher operating expenses, mainly driven by increased depreciation across all segments as well as higher level of repair and maintenance activities in the gas processing segment, coupled with lower profit generated from fund investments.
“Nonetheless, these impacts were cushioned by favourable fuel gas costs in tandem with lower fuel gas prices,” PetGas pointed out.
Compared to the preceding quarter ended Dec 31, net profit for PetGas rose 20.5% from RM363.9mil, with its top line also inching up 0.9% from RM1.57bil.
The group said the slightly better turnover was mainly due to higher revenue from its gas transportation segment following upward tariff adjustment.
Bottom line improvement was attributed to favourable impact of lower fuel gas costs, coupled with lower level of maintenance activities recorded in 1Q26 as compared to 4Q25, as well as higher share of profit from joint venture companies.
