PETRONAS Gas Maintains Results Momentum, Higher 9M Profits On Stronger Utilities And Regasification Margins

A Petroliam Nasional Bhd. (Petronas) gas station stands in front of the Petronas Twin Towers, second right, in Kuala Lumpur, Malaysia, on Friday, Feb. 27, 2015. Petronas, the Malaysian state oil company preparing for a leadership transition in April, reported a loss in the fourth quarter following crude's plunge. Photographer: Charles Pertwee/Bloomberg

Kuala Lumpur, 22 November 2021 – PETRONAS Gas Berhad (PGB) closed the third quarter of 2021 with Profit After Tax (PAT) of RM1.62 billion, 4% higher compared to the same period last year. The solid performance was delivered on the back of stronger margins from both the Utilities and Regasification business segments.

Amidst the first phase of the National Recovery Plan, PGB continues to sustain high reliability across all business segments, resulting in steady gas and utilities product delivery to the customers. The Utilities segment has benefitted from the change in fuel gas pricing from regulated to reference market price effective November 2020, amidst higher volumes from existing and new customers. At the same time, the Regasification segment recorded higher margin on the back of new revenue streams from LNG ancillary services and lower operating costs.

PGB’s nine-month revenue to 30 September 2021 stood at RM4.15 billion, slightly lower than RM4.20 billion recorded in 2020. This was mainly attributable to lower revenue from Utilities segment in line with lower product prices amidst higher sales volume. Gross profit nevertheless improved by 4% from RM2.02 billion to RM2.20 billion with stronger margins from Utilities and Regasification segments.

Comparing Q3 2021 against the same quarter last year, PGB’s revenue has slightly improved by 1% from RM1.41 billion to RM1.43 billion, in line with higher Utilities sales volumes and new revenue stream from LNG ancillary services. Gross profit rose by 8% from RM736 million to RM793 million on lower operating costs, mainly relating to internal gas consumption and utilities from the Regasification segment. PAT declined by 3% as the higher gross profit was negated by unfavourable foreign exchange movement impact. The Group recorded unrealised foreign exchange loss of RM10.4 million relating to translation of USD-denominated assets and liabilities during the quarter, which contrasts to a gain of RM94.3 million registered in the corresponding quarter.

PGB announced an interim dividend of 18 sen per ordinary share for Q3 FY2021, similar to dividend announced for Q3 FY2020. This amounts to a total of 50 sen per ordinary share in FY2021.

Commenting on PGB’s performance, Managing Director and Chief Executive Officer Abdul Aziz Othman said, “The strong margins recorded in the 9M FY2021 results reflect our ongoing effort to operate efficiently with better cost management. We have successfully rationalised our costs, even with relatively more plant activities executed compared to the previous year.”