Petronas Gas 1Q net profit up 6.7%, declares 16 sen dividend

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KUALA LUMPUR (May 28): Petronas Gas Bhd (PetGas)'s net profit for the first quarter ended March 31, 2019 (1QFY19) rose 6.7% to RM515.46 million from RM483.22 million a year earlier, due mainly to unrealised foreign exchange gain and higher share of profit from a joint venture company.

Revenue for the quarter ticked marginally higher to RM1.37 billion compared to RM1.35 billion in the previous year's corresponding quarter, according to the group's bourse filing today.

Earnings per share rose to 26.05 sen from 24.42 sen previously.

PetGas declared a first interim dividend of 16 sen per share, to be paid on June 27.

Reviewing its performance, PetGas said the unrealised foreign exchange gain of RM52.5 million arose due to discontinuance of hedge accounting on US dollar lease liabilities for floating storage units at the group's liquefied natural gas (LNG) regasification terminal Sungai Udang.

It said the higher share of profit follows the completion of the group's air separation unit project in Pengerang during the quarter.

On its prospects, PetGas said the Energy Commission has approved the tariffs for the gas transportation and regasification services for a pilot regulatory period in 2019.

The group said while the tariffs are expected to affect its transportation and regasification business segments' revenues in 2019, both segments are anticipated to continue contributing positively to the group's earnings.

"The group's gas processing segment is expected to deliver improved earnings pursuant to the higher fixed reservation charge under the 2nd Term of the 20-year Gas Processing Agreement effective from 2019 until 2023," it said.

At the midday break, PetGas gained 0.62% or 10 sen to RM16.36 with 264,800 shares traded.