KUALA LUMPUR (May 19): Petronas Gas Bhd’s (PetGas) net profit for the first quarter ended March 31, 2022 (1QFY22) fell 20.5% to RM410.58 million from RM516.4 million a year ago due to higher fuel gas price coupled with higher costs in gas processing, gas transportation and regasification segments.

In a bourse filing, the group said gross profits declined year-on-year (y-o-y) across the board, noting that the higher fuel gas price has squeezed the profit margin of the utilities segment.

The group said that the higher effective tax rate with the imposition of the Prosperity Tax for the year of assessment 2022 also contributed to the lower net profit.

Meanwhile, quarterly revenue climbed 8.8% to RM1.46 billion versus RM1.34 billion in 1QFY21.

The quarterly revenue growth was mainly attributed to increase in sales from its utilities segment as a result of higher product prices and higher electricity sales volumes recorded.

The group declared a first interim dividend of 16 sen per share with an ex-date of June 3, to be paid on June 16.

Commenting on its prospects, PetGas said its performance in the financial year ending Dec 31, 2022 (FY22) is expected to remain resilient as its business model and long-term contracts ensure steady revenue streams.

“The group’s gas transportation and regasification business segments are anticipated to continue contributing positively to the group’s earnings under Regulatory Period 1 (RP1) tariffs which is effective until Dec 31, 2022.

“The group’s gas processing segment is expected to remain stable on the back of its strong and sustainable income stream under the Second Term of the 20-year Gas Processing Agreement effective from 2019 until 2023,” it said.

PetGas noted that its utilities segment’s contribution may be affected by customer demand and fuel gas price — which is a non-pass through cost for electricity sales.

“The group is in the midst of finalising the renewal of several long-term contracts for the utilities segment to be concluded this year, which are anticipated to have a positive impact to the segment,” it added.

PetGas share price went up eight sen to RM17.36 on Thursday, giving it a market capitalisation of RM34.35 billion.