KUALA LUMPUR: Petronas Gas Bhd (PetGas) has reported a lower net profit of RM368.12 mil for the first quarter ended March 31 from RM515.46 mil in the previous corresponding quarter.
Revenue for the quarter rose by 2.1% to RM1.4 bil from RM1.37 bil, attributable to higher revenue from the gas transportation and regasification segments in line with the new tariffs for Regulatory Period 1 (RP1) effective Jan 1, 2020.
In a filing with Bursa Malaysia today, PetGas said gross profit improved by 1.8% or RM10.6 mil with higher contribution from the gas processing and regasification segments due to lower operating costs and the inclusion of jetty lease asset at the LNG Regasification Terminal, Pengerang for RP1 tariffs respectively.
“These negated the lower contribution from the gas transportation segment under RP1 and lower utilities gross profit,” it said.
Meanwhile, earnings per share decreased by 28.6%, reflecting lower profit attributable to shareholders of the company.
In a separate statement, PetGas said the profit after tax (PAT) for the quarter was lowered by 34% to RM348 mil from RM531 mil in the same quarter last year, as the company was affected by a weaker ringgit against the US dollar.
The weaker ringgit led to higher unrealised foreign exchange losses of RM152 mil during the quarter compared to a gain of RM58 mil in the same quarter last year.
“Excluding the foreign currency impact, PAT would be comparable,” it noted.
On the group’s performance, Petgas managing director and CEO Kamal Bahrin Ahmad said the Covid-19 pandemic and Movement Control Order has caused a slowdown in energy demand and business operations in Malaysia.
However, the group has continued to run operations safely and effectively during these times, ensuring continuity of gas supply delivery.
“Our business model which is underpinned by secured income streams under long-term contracts provides us with stability and certainty of earnings.
“Nevertheless, we are prudently reviewing our operating and capital spending given the current economic conditions, optimising and prioritising some activities compared to the rest,” he said.
PetGas also announced a first interim dividend of 16 sen per ordinary share amounting to RM316.6 mil for the financial year ending Dec 31, 2020, signalling the group’s sound business fundamentals amidst challenging times.
Moving forward, the group aim remains to be the solutions partner to customers while sustaining good operational performance at all of the assets.
“We are also committed to ensuring delivery of the projects which have been approved as these are necessary to sustain PetGas’ strong position into the future,” Kamal Bahrin added. – May 20, 2020, Bernama
