(This report has been updated as at 23:36)

KUALA LUMPUR (Aug 19): Petronas Gas Bhd’s (PetGas) has declared a special dividend of 50 sen per share in addition to a second interim dividend of 16 sen per share, amounting to a total of RM1.31 billion, for the quarter ended 30 June 2020 (2QFY20). 

The group said net profit for the quarter rose 8.8% to RM547.1 million from RM502.9 million in 2QFY19, on higher unrealised foreign exchange gain and a higher share of profit from a joint venture, as well as higher gross profit for the quarter. 

“The group recorded unrealised foreign exchange gain on translation of US dollar liabilities totalling RM20.5 million due to favourable movement of ringgit against US dollar during the quarter, compared to a loss of RM4.8 million in the corresponding quarter,” PetGas said in its filing with Bursa Malaysia.

Revenue for the quarter increased 1.4% to RM1.40 billion, from RM1.38 billion a year earlier, due to higher revenue contribution from the regasification segment, in line with new tariffs for Regulatory Period 1 (RP1) effective Jan 1, 2020.

PetGas said its gas processing segment’s results grew 14.6% during the quarter, on the back of lower operating costs attributable to lower depreciation expense, while the gas transportation segment saw a 3.7% fall in results.

The regasification segment saw a 9.5% increase in results for the quarter, in line with higher tariffs.

The utilities segment’s results declined 15.2% amid lower contribution from electricity sales volume, offset by lower depreciation and utilities cost of sales amid lower production.

PetGas announced a second interim dividend of 16 sen per share. 

For the first half of its financial year, PetGas said its net profit fell 10.1% to RM915.22 million from RM1.02 billion in the previous year, while revenue increased 1.8% to RM2.8 billion from RM2.75 billion. 

Going forward, the group said its transportation and regasification businesses are expected to continue contributing positively to its earnings under the RP1 tariffs, while the gas processing segment is anticipated to remain stable on the back of sustainable income stream under the second term of the 20-year Gas Processing Agreement effective 2019 until 2023.

The group’s utilities segment contribution will be driven by customer demand, which depends on economic conditions, PetGas said.

“The Covid-19 pandemic is not expected to significantly impact the group’s overall earnings, as the group’s business model and long-term contracts ensure steady revenue streams, particularly for gas processing, gas transportation and regasification business segments,” the group said.

PetGas’s share price closed unchanged at RM16.38, giving it a market capitalisation of RM32.41 billion.