KUALA LUMPUR (Feb 17): Petronas Gas Bhd (PetGas) saw its net profit grown 45.1% to RM571.29 million in the fourth quarter ended Dec 31, 2014 (4QFY14), due to the increase in consumption of gas, electricity tariffs and higher revenue from gas transportation and processing.

In a filing with Bursa Malaysia, Petronas Gas (fundamental: 2.7; valuation: 0.9) noted revenue in 4QFY14 rose 8.1% to RM1.11 billion, compared to RM1.03 billion in 4QFY13.

Full year earnings, however, fell 11.4% to RM1.84 billion, compared to RM2.08 billion in financial year 2013 (FY13), despite revenue increased 12.85% to RM4.39 billion.

The company declared a dividend of 15 sen per share in 4QFY14, lower than the 40 sen paid out in 4QFY13.

Full year dividend for FY14 came up to 55 sen per share, amounting to a total of RM296.8 million.

In its note, PetGas stated the higher offtake by customers, upward revision of electricity tariffs imposed since Jan 1, 2014, as well as higher revenue from gas transportation and processing under the new gas transportation and processing agreements, contributed to higher earnings in 4QFY14.

It explained profit for the full FY14 decreased by 11.4%, mainly due to recognition of DTA amounting to RM626.4 million, arising from ITA granted for the LNG Regasification Terminal in Sg Udang, Melaka, in the corresponding year, partially offset by higher share of profit from joint ventures and profit contribution from regasification and gas transportation segment.

“Excluding impact of DTAs, profit for the year increased by RM235.1 million or 16.2%,” it said.

PetGas expects to continue delivering sustainable and steady returns with the new gas processing and transportation agreements, which came into effect on April 14, last year. It also expects revenue from gas processing and transportation, utilities as well as regasification to be stable this year, as it is not exposed to fuel gas price fluctuation.

PetGas closed 26 sen or 1.18% higher at RM22.38 today, bringing its market capitalisation to RM44.28 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)