KUALA LUMPUR (Feb 18): Petronas Gas Bhd's (PetGas) net profit fell 34.7% to RM317.9 million in the fourth quarter ended Dec 31, 2018 (4QFY18), from RM486.7 million a year ago, due to share of losses from a joint venture company, Kimanis Power Sdn Bhd (KPSB).

The losses arose due to de-recognition of deferred tax assets (DTA) amounting to RM124.3 million (being 60% share of the group) in relation to certain tax benefits which now have a seven-year utilisation limit under the new Finance Act 2018, PetGas explained in a filing with Bursa Malaysia today.

Excluding the DTA impact from KPSB, profit for the quarter would still be lower by 8.6% or RM43.7 million due to once-off impairment loss on assets, following the business change at one of PetGas' customers, and higher finance costs, PetGas said.

This resulted in a lower earnings per share of 16.07 sen for 4QFY18 compared with 24.6 sen for 4QFY17.

Quarterly revenue, however, was up 5% to RM1.39 billion, versus RM1.32 billion in 4QFY17.

The group also declared a fourth interim dividend of 22 sen per share for the financial year ended Dec 31, 2018 (FY18), payable on March 15.

For the full year FY18, its net profit grew by a marginal 1% to RM1.81 billion from RM1.79 billion in the previous year, while revenue rose 12.3% to RM5.5 billion from RM4.9 billion in FY17.

On prospects, PetGas said while the tariffs for gas transportation and regasification services for 2019, which were approved by the Energy Commission, are expected to affect the group's transportation and regasification business revenues in 2019, both segments are anticipated to continue contributing positively to PetGas' earnings.

"The group's gas processing segment is expected to deliver improved earnings pursuant to the higher fixed remuneration charge under the second term of the 20-year Gas Processing Agreement effective from 2019 until 2023," it added.

Shares of PetGas closed unchanged at RM18.12 today, for a market capitalisation of RM35.86 billion.