Wednesday, 27 May 2020
BUSINESS
21/05/2020 08:31 PM

KUALA LUMPUR, May 20  -- Petronas Gas Bhd (PetGas) has reported a lower net profit of RM368.12 million for the first quarter ended March 31, 2020 compared with RM515.46 million in the previous corresponding quarter. 

Revenue for the quarter rose by 2.1 per cent to RM1.40 billion from RM1.37 billion, attributable to higher revenue from gas transportation and regasification segments in line with new tariffs for Regulatory Period 1 (RP1) effective Jan 1 2020.

In a filing with Bursa Malaysia today, PetGas said gross profit improved by 1.8 per cent or RM10.6 million with higher contribution from gas processing and regasification segments due to lower operating costs and inclusion of jetty leased asset at LNG Regasification Terminal, Pengerang for RP1 tariffs respectively.

“These negated lower contribution from gas transportation segment under RP1 and lower utilities gross profit,” it said.

Meanwhile, earnings per share decreased by 28.6 per cent, reflecting lower profit attributable to shareholders of the company.

In a separate statement, PetGas said profit after tax (PAT) for the quarter was lowered by 34 per cent to RM348 million compared with RM531 million in the same quarter last year, as the company was affected by a weaker ringgit against the US dollar.

The weaker ringgit led to higher unrealised foreign exchange losses of RM152 million during the quarter compared to a gain of RM58 million in the same quarter last year.

“Excluding the foreign currency impact, PAT would be comparable,” it said.

Commenting on the group’s performance, Petgas managing director and chief executive officer Kamal Bahrin Ahmad said the current COVID-19 pandemic and Movement Control Order has caused a slowdown in energy demand and business operations in Malaysia.

However, the group has continued to run operations safely and effectively during these unprecedented times, ensuring continuity of gas supply delivery to the nation and its people.

“Our business model which is underpinned by secured income streams under long term contracts provides us with stability and certainty of earnings.

“Nevertheless, we are prudently reviewing our operating and capital spending given the current economic conditions, optimising and prioritising some activities compared to the rest,” he said.

PetGas also announced a first interim dividend of 16 sen per ordinary share amounting to RM316.6 million in respect of the financial year ending Dec 31, 2020, signalling the group’s sound business fundamentals amidst challenging times.

Moving forward, the group aim remains to be the solutions partner to customers while sustaining good operational performance at all of the assets.

“We are also committed to ensure delivery of the projects which have been approved as these are necessary to sustain PetGas’ strong position into the future,” Kamal Bahrin added.

-- BERNAMA

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