PETRONAS Gas closes first 9 months of 2023 with profit after tax of RM1.4 bln, increase of 10.7 pct

Abdul Aziz Othman

KUCHING, Nov 21: PETRONAS Gas Berhad (or the Group) closed the first three quarters of 2023 with a profit after tax (PAT) of RM1.4 billion, an increase of 10.7 per cent from RM1.2 billion posted within the same period in 2022.

In a Bernama news report, the strong performance for the period was driven by higher profit before tax (PBT) and the absence of prosperity tax incurred in the financial year 2022.

The report also stated that this demonstrates PETRONAS Gas’ resilience amidst challenging market conditions on the back of long-term contracts under the Gas Processing, Gas Transportation and Regasification segments supported by consistent world-class operational performance.

For Q3 FY2023, PETRONAS Gas’ revenue improved by 7.4 per cent to RM4.8 billion compared to RM4.5 billion posted in the same quarter last year, mainly contributed by segmental revenue from the Utilities segment, which was in line with higher product price.

However, the Group’s gross profit declined by 5.3 per cent or RM99.1 million due to lower contributions from the Gas Transportation, Gas Processing and Regasification segments on higher operating expenses, mainly internal gas consumption and depreciation expenses.

These were cushioned by higher contributions from the utility segment in tandem with higher revenue and stronger margins following the upward revision of the imbalance cost pass-through (ICPT) surcharge and the favourable impact of improved terms in the contract renewals.

Despite the lower gross profit, the Group’s PBT improved by two per cent or RM35.6 million on the back of lower expenses due to lower exposure from foreign exchange movement coupled with lower financing costs following the early settlement of USD lease liabilities for floating storage units at LNG regasification terminal in Sungai Udang, Melaka, and higher share of profit from joint venture companies.

PETRONAS Gas managing director and chief executive officer Abdul Aziz Othman commented, “The strong financial performance for the first three-quarters of FY2023 highlights our continuous focus on improving operational efficiency and cost optimisation, ensuring business resilience despite the lower second Regulatory Period (RP2) tariff and challenging market conditions.

“We are dedicated to improving our plant operations’ reliability, safety, and cost-effectiveness, ensuring sustainable revenue with a healthy margin. Our focus remains on pursuing opportunities for growth and creating sustainable value aligned with the National Energy Transition Roadmap (NETR).

“Looking ahead, the Group is actively transitioning towards a greener portfolio, emphasising renewables and carbon capture and storage, as part of our commitment to achieving Net Zero Carbon Emissions by 2050,” he said, as quoted by Bernama.

The Group also declared an interim dividend of 18 sen per share, equivalent to RM356.2 million, similar to last year’s quarter. — DayakDaily