KUALA LUMPUR (Feb 22): Petronas Gas Bhd's (PetGas) net profit rose marginally by 3.73% to RM503.35 million in the fourth quarter ended Dec 31, 2020 (4QFY20) from RM485.27 million in the previous year on lower operating costs. 

In a Bursa Malaysia filing, the gas infrastructure and utilities company said revenue for the quarter grew slightly to RM1.39 billion from RM1.37 billion a year ago due to higher contribution from its regasification and gas transportation segments in line with new tariffs for Regulatory Period 1 (RP1) effective Jan 1 last year. 

Earnings per share rose to 25.44 sen from 24.52 sen. 

The group also declared a fourth interim dividend of 22 sen per ordinary share amounting to RM435.3 million and a special interim dividend of five sen per ordinary share amounting to RM98.9 million, to be paid on March 22, 2021. 

For FY20, PetGas posted a net profit of RM2.01 billion versus RM1.94 billion a year ago, as its revenue increased 2.5% to RM5.59 billion from RM5.46 billion, underpinned by sustained revenue streams and lower costs. 

The group added its gas processing segment posted slightly lower revenue by 1.2% or RM5 million following lower Internal Gas Consumption (IGC) incentive due to revision in pricing from regulated price to reference market price.

Meanwhile, downward adjustment on Miri Gas Transportation tariff reported a year earlier has helped to boost its gas transportation segment as its revenue was higher by 6.2% or RM17.1 million in the quarter. 

For its regasification segment, PetGas highlighted its liquified natural gas regasification terminals in Sg Udang, Melaka, and Pengerang, Johor sustained their strong reliability performances at close to 100% in Q4FY20. 

“Regasification’s segment revenue rose by 12.9% or RM40.6 million in line with higher RP1 tariffs,” it said. 

However, the group’s utilities segment fell by 10.3% or RM36.4 million, mainly attributable to lower excess electricity offtake by customers.

Moving forward, PetGas expects the Covid-19 pandemic to have less impact on its earnings as the group’s business model and long-term contracts ensure steady revenue streams, across all business segments. 

At noon break today, shares of PetGas rose 24 sen or 1.5% to RM16.24, giving it a market capitalisation of RM32.14 billion.