PetGas records lower Q3 net profit of RM580.8m

KUALA LUMPUR: Petronas Gas Bhd’s (PetGas) net profit for the third quarter (Q3) ended Sept 30, 2021 eased 1.7% to RM580.84 million from RM591.01 million a year earlier, as a higher gross profit was negated by the impact of unfavourable foreign exchange (forex) movement.

The group recorded an unrealised forex loss of RM10.4 million relating to translation of US dollar-denominated assets and liabilities during the quarter.

“(This) contrasts to a gain of RM94.3 million registered in the corresponding quarter (of last year),” the company said in a filing with Bursa Malaysia yesterday.

PetGas’ revenue increased 1.4% year-on-year to RM1.43 billion in Q3 2021, mainly contributed by higher revenue from the utilities as well as regasification segments in line with higher sales volumes and new revenue stream from liquefied natural gas (LNG) ancillary services, respectively.

Gross profit was also higher by 7.7% or RM56.9 million with improved contribution from the regasification segment due to lower operating costs, mainly relating to internal gas consumption and utilities.

Moving forward, the company said its performance in 2021 was expected to remain resilient despite the ongoing pandemic as its business model and long-term contracts ensured steady revenue streams particularly for gas processing, gas transportation and regasification business segments.

PetGas said the gas transportation and regasification business segments were anticipated to continue contributing positively to the group’s earnings under Regulatory Period 1 tariffs.

“The group’s gas processing segment is expected to remain stable on the back of its strong and sustainable income stream under the second term of the 20-year gas processing agreement effective from 2019 until 2023.

“(Meanwhile,) the utilities segment’s contribution will be driven by customer demand, underpinned by economic conditions,” it added. – Bernama