KUALA LUMPUR (May 10): Petronas Gas Bhd (PetGas) saw its net profit dip 0.62% on year to RM447.17 million or 22.6 sen a share in the first quarter ended March 31, 2016 (1QFY16), from RM449.94 or 22.74 sen a share in the previous corresponding period, due to higher tax expense.

Revenue however, increased 2.72% to RM1.131 billion in 1QFY16, from RM1.101 billion in 1QFY15.

PetGas declared an interim dividend of 14 sen a share, amounting to RM277 million for the financial year ending Dec 31, 2016 (FY16), payable on June 8 this year.

In notes accompanying its results, Petronas Gas said profit before tax (PBT) was marginally higher by RM7.4 million to RM571.29 million.

Revenue increased due to higher gas processing revenue, in line with higher performance based structure income on the back of higher liquid extraction performance and higher regasification revenue attributed to higher storage fees, on the back of a stronger US dollar against the ringgit.

However, gas processing segment’s results was marginally lower by RM2.8 million to RM200.9 million in 1QFY16, due to higher depreciation expense in line with higher projects completed post 1QFY15.

Similarly, the regasification segment’s results was lower by RM5.6 million to RM70.7 million in 1QFY16, due to higher repair and maintenance costs.  

Although the utilities segment’s revenue rose RM3.4 million to RM252.9 million in 1QFY16 due to higher average sales price in line with fuel gas price revision on Jan 1 this year, profit decreased RM7.5 million to RM48.6 million as a result of higher operating costs.  

On prospects, PetGas said its performance is expected to remain steady in 2016, despite the challenging economic environment, due to its “solid business models” under the Gas Processing agreement, Gas Transportation agreement and Regasification Service agreement signed respectively with Petroliam Nasional Bhd (Petronas), while its utilities segment will depend on demand from petrochemical customers.

In a separate announcement, it said the Heads of Agreement (HOA) entered into with Linde (M) Sdn Bhd for the development of the Air Separation Unit in Pengerang Integrated Complex has been further extended to June 30, 2016, so as to facilitate further discussions between the parties.

PetGas shares closed 70 sen or 3.24% lower at RM20.90 yesterday (May 9), with a market capitalisation of RM 41.36 billion.