KUALA LUMPUR (Nov 30): Petronas Gas Bhd saw a 19.7% increase in its net profit to RM499.81 million for the third quarter ended Sept 30, 2018, from RM417.43 million a year earlier, on the back of higher contribution from its regasification and utilities segments.

This was partly offset by higher finance costs due to recognition of previously capitalised interest expenses following the completion of the group's new liquefied natural gas (LNG) regasification terminal in Pengerang, Johor.

Quarterly revenue rose 20% to RM1.4 billion from RM1.16 billion in the previous year's corresponding quarter, mainly contributed by the new LNG regasification terminal which commenced commercial operations in November 2017.

Petronas Gas said its gas processing, transportation and regasification plants continued to perform well, with reliability of above 99%.

"Gas processing's liquid plant extraction performance continued to exceed targets, contributing towards slightly higher performance-based structure income, compared to the corresponding quarter. The utilities segment achieved favourable sales volume and selling price," the group said in a filing with the bourse.

For the cumulative nine-month period, net profit grew 14.3% to RM1.49 billion from RM1.31 billion a year earlier, while revenue increased 17.3% to RM4.11 billion from RM3.51 billion.

Going forward, the group expects stable performance as the Energy Commission has confirmed that the current tariffs for its gas transportation and regasification services will be maintained until end-2018.

"The group's performance is therefore expected to remain stable on the back of its strong and sustainable income streams from existing gas processing agreement, gas transportation agreements and regasification service agreement signed with Petronas," it said.

It is now waiting for the Energy Commission's approval for the 2019 tariffs for gas transportation and regasification services which are expected to be announced by year end.

Petronas Gas' share price closed up 14 sen or 0.74% at RM18.94, giving a market capitalisation of RM37.48 billion.