KUALA LUMPUR (Nov 22): Petronas Gas Bhd’s (PetGas) net profit for the third quarter ended Sept 30, 2021 (3QFY21) slipped 1.72% to RM580.84 million from RM591.01 million due to unfavourable foreign exchange movement.

Quarterly revenue, however, rose 1.45% to RM1.43 billion from RM1.41 billion, mainly contributed by higher revenue from its utilities and regasification segments in line with higher sales volumes and a new revenue stream from liquefied natural gas ancillary services respectively.

Earnings per share dipped to 29.35 sen from 29.87 sen in line with the drop in profit, the gas infrastructure and centralised utilities company said in a filing with Bursa Malaysia on Monday (Nov 22). 

PetGas declared a third interim dividend of 18 sen per share, payable on Dec 20, bringing its total dividends so far to 50 sen for FY21.

PetGas said the group recorded an unrealised foreign exchange loss of RM10.4 million relating to translation of US dollar-denominated assets and liabilities during the quarter in contrast to a gain of RM94.3 million registered for the corresponding quarter of the previous year.

This was despite PetGas seeing its gross profit higher by 7.7% or RM56.9 million with a higher contribution from the regasification segment due to lower operating costs, mainly relating to internal gas consumption and utilities.

On a quarterly basis, PetGas saw its net profit grow 32.29% from RM439.07 million, while revenue was up 3.17% from RM1.38 billion for the immediate preceding quarter (2QFY21). 

For the cumulative nine-month period, PetGas’ net profit rose 2% to RM1.54 billion from RM1.51 billion, whereas revenue slipped 1.23% to RM4.15 billion from RM4.2 billion.

On its prospects, PetGas said its performance in FY21 is expected to remain resilient despite the ongoing pandemic as the group’s business model and long-term contracts ensure steady revenue streams, particularly for the gas processing, gas transportation and regasification business segments.

“The group’s gas transportation and regasification business segments are anticipated to continue contributing positively to the group’s earnings under Regulatory Period 1 tariffs. 

“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.

“The group’s utilities segment contribution will be driven by customer demand, underpinned by economic conditions,” it said. 

At 12.30pm, PetGas shares settled unchanged at RM16.40, giving it a market capitalisation of RM32.45 billion.