PETALING JAYA: Petronas Gas Bhd closed the first three quarters of 2023 with a profit after tax (PAT) of RM1.4 billion, an increase of 10.7% from RM1.2 billion posted in the same period in 2022.
The strong performance for the period was driven by higher profit before tax (PBT) and the absence of Prosperity Tax incurred in financial year 2022.
It also demonstrates Petronas Gas’ resilience amid challenging market conditions on the back of long-term contracts in the gas processing, gas transportation and regasification segments supported by consistent world-class operational performance.
For Q3’23, Petronas Gas’ revenue improved by 7.4% to RM4.8 billion compared with RM4.5 billion in the same quarter last year, mainly contributed by segmental revenue from the utilities segment, which was in line with higher product prices.
However, the group’s gross profit declined by 5.3% 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 utilities segment in tandem with higher revenue and stronger margins following the upward revision of the imbalance cost pass-through surcharge and the favourable impact of improved terms in the contract renewals.
Despite the lower gross profit, the group’s PBT improved by 2% or RM35.6 million on the back of lower expenses due to lower exposure to foreign exchange movements coupled with lower financing costs following the early settlement of US dollar lease liabilities for floating storage units at LNG regasification terminal in Sg Udang, Malacca, and higher share of profit from joint-venture companies.
Petronas Gas managing director and CEO Abdul Aziz Othman commented, “The strong financial performance for the first three quarters of FY23 highlights our continuous focus on improving operational efficiency and cost optimisation, ensuring business resilience despite the lower Second Regulatory Period tariff and challenging market conditions.”
The group declared an interim dividend of 18 sen per share, equivalent to RM356.2 million, similar to that in the same quarter last year.
