Friday 29 Mar 2024
By
main news image

KUALA LUMPUR (Aug 27): Petronas Gas Bhd said today second quarter net profit fell 1.26% to RM502.9 million from RM509.33 million a year earlier as a result of higher tax expense. Quarterly revenue, however, rose.

In a statement to Bursa Malaysia today, Petronas Gas said a deferred tax revision to reflect the tax incentive granted for the group's liquefied natural gas (LNG) regasification terminal in Pengerang, Johor resulted in lower tax expense in the corresponding quarter.

According to the group, revenue rose to RM1.38 billion in the second quarter ended June 30, 2019 (2QFY19) from RM1.36 billion.

"Group revenue was higher by 1.6% or RM22.0 million mainly driven by higher revenue from utilities and gas processing, offset by lower revenue from gas transportation and LNG regasification Pengerang under incentive-based regulation (IBR). Utilities revenue improved on the back of higher demand from customers and upward fuel gas price revision while gas processing revenue rose driven by higher reservation charge under the second term gas processing agreement.

"The group's plants and facilities continued to perform well above 99% reliability. Gas processing's liquid plant extraction performance continued to exceed targets, contributing towards higher performance incentives compared to the corresponding quarter. The utilities segment achieved favourable sales volume and selling price in line with upward fuel gas price revision," Petronas Gas said.

For 1HFY19, net profit climbed to RM1.02 billion from RM992.55 million a year earlier, while revenue was higher at RM2.75 billion versus RM2.71 billion.

Looking ahead, Petronas Gas said the group's gas processing segment is expected to deliver improved earnings pursuant to the higher fixed reservation charge under the 20-year gas processing agreement's second term effective from 2019 until 2023.

The group is also mindful of Malaysia's gas transportation and regasification tariffs' impact on its revenue.

"As announced on Dec 31, 2018, the Energy Commission has approved the tariffs for the gas transportation and regasification services for pilot regulatory period in 2019. While the tariffs are expected to 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," it said.

In a separate statement, Petronas Gas said it plans to pay a second interim dividend of 16 sen per share. The ex and payment dates fall on Sept 13 and 27, 2019 respectively.

At 12:30pm today, Petronas Gas' share price fell 68 sen or 4.33% to RM15.02. The stock saw 1.25 million shares traded.

      Print
      Text Size
      Share