This article first appeared in The Edge Financial Daily on August 16, 2018

KUALA LUMPUR: Petronas Gas Bhd’s (PetGas) net profit rose 19.7% to RM509.33 million in the second quarter ended June 30, 2018 (2QFY18) from RM425.33 million a year ago, on the back of higher revenue and lower tax expenses negated by higher finance cost.  Earnings per share rose to 25.74 sen from 21.49 sen.

Quarterly revenue also grew 15.7% to RM1.36 billion from RM1.17 billion in 2QFY17, mainly contributed by its new liquefied natural gas (LNG) regasification terminal in Pengerang, Johor, which commenced commercial operations in November last year. This was further supported by higher revenue from all segments.

The group also declared a second interim dividend of 16 sen per share, amounting to RM316.6 million, for the financial year ending Dec 31, 2018, payable on Sept 14. For the cumulative six months (1HFY18), PetGas posted an 11.7% increase in net profit to RM992.55 million from RM888.56 million a year ago. Revenue rose 15.6% to RM2.71 billion from RM2.34 billion in 1HFY17.

PetGas said the group’s performance is expected to remain stable on the back of its strong and sustainable income streams from an existing gas processing agreement, gas transportation agreements and a regasification service agreement signed with parent Petroliam Nasional Bhd. “The utilities segment will continue contributing positively to the group’s results. The group’s regasification segment results will benefit from full-year contribution of the new LNG regasification terminal in Pengerang,” it added.