KUALA LUMPUR (Nov 19): Petronas Gas Bhd's (PetGas) third quarter (3QFY19) net profit fell 13.6% to RM431.59 million from RM499.81 in the last corresponding quarter, due to lower gross profit plus higher finance costs. 

The company’s board declared a third interim dividend of 18 sen per ordinary share, amounting to RM356.2 million in respect of the financial year ending Dec 31, 2019 (FY19). This brings the total dividend declared so far to 50 sen — an amount which is the same as the preceding year. 

In a filing with Bursa Malaysia, PetGas said it however managed to pull in higher share of profit from a joint venture company, following the commencement of commercial operation at the group’s Air Separation Unit project in Pengerang, Johor, in the first quarter of 2019 (1QFY19).

Quarterly revenue dipped 4.5% to RM1.338 billion from RM1.402 billion in the previous year, mainly attributed to lower revenue from Gas Transportation and Utilities segments. 

"Gas transportation revenue was lower, in line with downward revision of tariff under Incentive-based Regulation (IBR), whilst Utilities revenue was attributed to lower volumes due to planned statutory turnaround conducted at one of the group’s Air Separation Unit in Kertih," PetGas explained. 

For the nine-month period (9MFY19), PetGas's net profit dropped marginally to RM1.45 billion compared with RM1.492 billion last year, while its revenue remained relatively flat at RM4.086 billion versus RM4.111 billion in 9MFY18.

Moving forward, PetGas said the Energy Commission's newly-announced tariff will affect the group's Transportation and Regasification business segment revenues in 2019. Both segments are anticipated to continue contributing positively to the group’s earnings.

Meanwhile, its gas processing segment is expected to deliver improved earnings, pursuant to the higher fixed reservation charge under the second Term of the 20-year gas processing agreement, effective from 2019 until 2023.

Shares of PetGas gained two sen to close at RM16.70 per share today, for a market capitalisation of RM33.05 billion.