KUALA LUMPUR (Aug 26): Petronas Gas Bhd (PetGas) said on Friday (Aug 26) its second-quarter net profit dropped 9.57% to RM396.5 million from RM439.07 million a year earlier, despite a rise in revenue, due to the impact of unfavourable foreign exchange movement, and higher effective tax rate from the imposition of the prosperity tax.

Revenue rose 8.7% to RM1.5 billion for the second quarter ended June 30, 2022 (2QFY22) from RM1.38 billion in 2QFY21, its bourse filing read. Earnings per share slipped to 20.04 sen from 22.19 sen.

The group declared a second interim single tier dividend of 16 sen per ordinary share, payable Sept 23, 2022.

The growth in revenue was mainly driven by higher contribution from the utilities segment, where income rose 35.5% or RM110.7 million as a result of higher product prices and higher electricity sales volume.

“Product prices were higher, in line with fuel gas price, which is based on reference market price, while electricity sales volume increased following commencement of electricity supply to the grid under the New Electricity Despatch Arrangement (NEDA) from August 2021 onwards,” PetGas said.

For the first six months of FY22, PetGas’ net profit fell 15.53% to RM807.08 million from RM955.47 million in the same period in FY21, despite cumulative revenue climbing 8.76% to RM2.96 billion from RM2.72 billion.

PetGas said demand for gas and utilities is expected to improve, as the country is transitioning into an endemic phase of Covid-19, and expects asset utilisation to improve, in line with economic recovery.

Looking ahead, the group’s performance in 2022 is expected to remain resilient, on the back of long-term contracts, which ensures steady revenue streams, particularly for the gas processing, gas transportation and regasification business segments.

“Nevertheless, the anticipated rise in Malaysia Reference Price (MRP), weakening trend of the ringgit against the US dollar and imposition of prosperity tax may further impact overall group performance.

“The group will continue to focus on excellent operational performance and remain committed to ensure a sustained level of returns to our shareholders,” it added.

PetGas' share price rose 2 sen to close at RM17.52 on Friday (Aug 26), giving it a market capitalisation of RM34.5 billion.