KUALA LUMPUR (Nov 14): Petronas Gas Bhd's (PetGas) net profit for the third quarter ended Sept 30, 2022 (3QFY2022) fell 27% to RM425.82 million from RM580.84 million for the same period last year, amid higher operating cost — mainly relating to fuel gas and internal gas consumption costs, and the impact of unfavourable foreign exchange movements.

The decline in 3QFY2022 profit came despite revenue climbing 9% to RM1.56 billion from RM1.43 billion, mainly lifted by a stronger utilities segment's contribution as a result of higher product prices, in line with higher fuel gas prices.

Earnings per share were reduced to 21.52 sen from 29.35 sen previously. The group declared a third interim single-tier dividend of 18 sen, payable on Dec 12, with the stock to trade ex-dividend on Nov 29.

For the first nine months of FY2022, net profit dropped 20% to RM1.23 billion from RM1.54 billion, despite cumulative revenue growing 9% to RM4.53 billion from RM4.15 billion.

Looking ahead, PetGas said gas and utilities demand is expected to improve, with the country transitioning into the endemic phase of Covid-19, and the group expecting assets utilisation to improve in line with the economic recovery.

It expects its performance in 2022 to remain resilient, on the back of long-term contracts that ensure steady revenue streams, particularly for its gas processing, gas transportation and regasification business segments.

"During the period, the group has [also] renewed several long-term utilities’ contracts, which improved the utilities segment's margin for 3QFY2022 performance, and consequently helped to partly mitigate the adverse impact of higher fuel gas cost."

Nevertheless, it also noted that the rise in the Malaysia Reference Price, further weakening trend of the ringgit against the US dollar, and the imposition of the one-off prosperity tax will continue to impact the group’s overall performance.

“Even as the group contends with the weakening trend of the ringgit against the US dollar, and elevated fuel gas prices, continuous efforts will be pursued to deliver operational excellence and ensure a sustained level of returns to our shareholders,” it added.

PetGas shares finished six sen lower at RM16.94 each on Monday (Nov 14), bringing the group a market capitalisation of RM33.5 billion.