Petronas Gas Q4 net profit up 3.7% to RM503.35m

PETALING JAYA: Petronas Gas Bhd’s (PetGas) net profit for the fourth quarter ended Dec 31, 2020 grew 3.7% to RM503.35 million from RM485.27 million a year ago with higher contribution from utilities, regasification and gas processing segments, due to lower operating costs, complemented by higher share of profit from joint ventures.

The group recorded higher revenue by 1.2% at RM1.39 billion from RM1.37 billion mainly contributed by higher revenue from regasification and gas transportation segments in line with new tariffs for Regulatory Period 1 (RP1) effective Jan 1, 2020.

For the full year period, its net profit was 3.8% higher at RM2.01 billion compared with RM1.94 billion in the previous year, while group revenue stood at RM5.59 billion, an increase by 2.5% from RM5.46 billion a year before.

The board of directors has approved a fourth interim dividend of 22 sen per share amounting to RM435.3 million and a special interim dividend of 5 sen per share amounting to RM98.9 million in respect of the financial year ended Dec 31, 2020.

Looking ahead, the group’s gas transportation and regasification business segments are anticipated to continue contributing positively to the group’s earnings under the RP1 tariffs.

The group’s gas processing segment is expected to remain stable on the back of its strong and sustainable income stream under the 2nd Term of the 20-year Gas Processing Agreement effective from 2019 until 2023, while the utilities segment contribution will be driven by customer demand, underpinned by economic conditions.

“The Covid-19 pandemic is not expected to significantly impact the group’s overall earnings as the group’s business model and long-term contracts ensures steady revenue streams, particularly for gas processing, gas transportation and regasification business segments,” PetGas said in its exchange filing.

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