PetGas 2Q net profit increases to RM453mil on higher RP3 tariffs


PETRONAS Gas Bhd managing director and chief executive officer Abdul Aziz Othman.

KUALA LUMPUR: Petronas Gas Bhd’s (PetGas) net profit rose to RM453.33mil in the second quarter ended June 30, 2026 (2Q26) from RM450.19mil in the same period last year.

However, revenue for the quarter under review inched down by 5.6% to RM1.50bil from RM1.59bil previously.

This was due to lower revenue from the utilities segment, following lower sales volume due to planned regulatory turnaround activities.

“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 liquified natural gas (LNG) storage services at Pengerang, Johor, which commenced in August 2025,” it said in a filing with Bursa Malaysia yesterday.

PetGas said the gas transportation segment’s 2Q26 revenue increased by 12.7% to RM320.5mil from RM284.3mil in 2Q25.

This was mainly due to higher regulatory period three (RP3) tariff supported by growth in the regulated asset base following successful execution of RP2 projects.

“This was further complemented by upward tariff adjustments.

“This was primarily related to the sharing factor for prior years under recovery of internal gas consumption or IGC price in accordance with the incentive-based regulation or IBR framework by the Energy Commission,” it said.

For the first half of 2026 (1H26), the group’s net profit slipped to RM892.02mil from RM918.98mil in the same period a year ago.

Revenue, meanwhile, also decreased 3.1% to RM3.09bil from RM3.18bil previously.

“The softer performance is mainly attributable to lower revenue from the utilities segment, following lower sales volume due to planned regulatory turnaround activities, coupled with reduced product prices in line with a decrease in fuel gas price,” said PetGas.

On prospects, PetGas is expected to continue delivering healthy performance in 2026, supported by stable earnings from its regulated and long-term contracted businesses, as well as sustained operating performance.

The group said it remains attentive to margin pressures arising from higher fuel gas prices and elevated operating costs and is committed to mitigating cost pressures through disciplined cost management and optimising asset utilisation.

“We will continue to strengthen operational resilience, commercial excellence and cost optimisation while maintaining safe and reliable operations, with a focus on delivering long-term value creation for shareholders,” it added.

Meanwhile, PetGas managing director and chief executive officer Abdul Aziz Othman said PetGas’s healthy performance reflects the strength of the group’s regulated and long-term contracted businesses, supported by disciplined cost management, strong asset reliability and proactive asset stewardship.

“PetGas remains focused on enhancing operational resilience, optimising asset utilisation and driving sustainable value creation for our stakeholders,” he added.

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