KUALA LUMPUR: Petronas Gas Bhd (PetGas) saw its net profit jump 7.6% to RM449.94 million or 22.74 sen a share for the first quarter ended March 31, 2015 (1QFY15) from RM418 million or 21.12 sen a share a year ago, on higher revenue from its gas transportation and gas processing segments.
Revenue increased 4.5% to RM1.1 billion from RM1.05 billion in 1QFY14.
PetGas (fundamental: 2.7; valuation: 0.5) also proposed a first interim dividend of 14 sen for the financial year ending Dec 31, 2015, payable on June 16, 2015.
In a filing with Bursa Malaysia yesterday, PetGas attributed the higher revenue to higher gas transportation revenue and gas processing revenue in line with higher capacity booking by Petroliam Nasional Bhd (Petronas) and higher reservation charge as a result of the implementation of new gas transportation agreements and a gas processing agreement effective April 1, 2014.
“Given the structure of [the] gas processing agreement and gas transportation agreements which came into effect on April 1 , the group expects to continue delivering sustainable and steady returns,” it added.
Going forward, PetGas expects revenue from its gas processing and gas transportation segments to remain stable as a result of capacity reservation made in advance by Petronas.
This article first appeared in The Edge Financial Daily, on May 13, 2015.