This article first appeared in The Edge Financial Daily on February 27, 2018

KUALA LUMPUR: Petronas Gas Bhd (PetGas) reported a 5% rise in its fourth quarter net profit to RM486.7 million from RM465.6 million a year earlier, as revenue rose, mainly on contribution from the group's new liquefied natural gas (LNG) regasification terminal in Pengerang, Johor, which commenced operations during the quarter.

PetGas’s revenue grew 13% to RM1.3 billion in the fourth quarter ended Dec 31, 2017 (4QFY17) from RM1.15 billion, according to PetGas’ Bursa Malaysia filing yesterday.

The revenue growth was also supported by higher revenue from gas processing and utilities segments on the back of higher PBS (performance based structure) income, and favourable selling price, respectively.

“Profit [after tax] for the quarter also increased by 10% or RM47.1 million to RM510.4 million on higher revenue, coupled with higher share of profit from one of the group's joint venture companies,” PetGas said.

For 4QFY17, the group proposed a dividend of 19 sen a share, which brings its full-year dividend payout to 66 sen, as opposed to 62 sen in FY16.

The group's performance is expected to remain robust for 2018, backed by its strong and sustainable revenue streams from existing Gas Processing Agreement and Gas Transportation Agreements signed with Petroliam Nasional Bhd or Petronas, the filing read.

“Furthermore, revenue stream for the regasification segment will grow with the first full year of operations at the group's new LNG regasification terminal in Pengerang, Johor," PetGas said.

For FY17, PetGas said net profit rose to RM1.79 billion from RM1.74 billion a year earlier, while revenue improved to RM4.81 billion from RM4.56 billion.