Petronas Gas allocates RM1.3b in capex for FY18

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KUALA LUMPUR (April 30): Petronas Gas Bhd (PetGas) has allocated some RM1.3 billion in capital expenditure (capex) for the financial year ending Dec 31, 2018 (FY18), slightly lower than its allocation of RM1.4 billion in FY17.

PetGas chairman Datuk Mohd Anuar Taib said RM750 million of the amount will go towards operational expenditure, for the operation of its existing plants and to revamp certain facilities.

"We have also allocated RM350 million for our operations at the Refinery and Petrochemical Integrated Development (RAPID) and the balance will be used for pipeline extension of our existing project," he said at a press conference after the company's annual general meeting today.

Meanwhile, PetGas was tight-lipped when asked about its discussions with the Energy Commission (EC) on the tariff for third party access (TPA), which allows third parties the option to utilise the company's transmission and regasification infrastructure effective Jan 16.

"We can't comment much on the tariff but we are currently in engagement with the EC to discuss the tariff quantum for next year," he said.

Asked on the potential impact of a lower tariff on PetGas' financials going forward, he only said the tariff is a multiplier for the company's revenue.

He added that there have been several shipping players that have been in discussion with the EC, to obtain their licences under the TPA, but did not disclose details.

Overall, Mohd Anuar said PetGas is positive on the government's move to liberalise the gas industry to promote competition which will provide a broader choice for consumers.

For FY17, PetGas posted a 5% year-on-year increase in net profit to RM1.8 billion, from RM1.7 billion in FY16.

Its annual revenue increased 5% to RM4.8 billion from RM4.6 billion, supported by the commencement of operations at the LNG Regasification Terminal Pengerang.

The company declared a record high dividend payment of 66 sen per share for the financial year.