KUALA LUMPUR: Petronas Gas Bhd turned in a resilient financial performance for the financial year 2022 (FY22) with profit after tax (PAT) of RM1.76 billion, and declared an interim dividend of 22 sen per ordinary share for the fourth quarter (Q4’22).
Amid a challenging external environment which saw higher fuel gas prices and unfavourable foreign exchange movements, the group maintained its world-class performance and reliability across all its plants and facilities during the period, which ensured steady earnings from long-term contracts under the gas processing, gas transportation, regasification and utilities segments.
For FY22, group revenue increased by 9% or RM512 million to RM6.16 billion, mainly driven by higher revenue from the utilities segment on the back of higher product prices.
Gross profit was lower by 14% at RM2.35 billion against RM2.72 billion in FY21 resulting from lower contribution from all segments following higher operating expenses, mainly fuel gas and internal gas consumption expenses.
PAT declined by 17% from RM2.11 billion to RM1.76 billion, in tandem with lower gross profit and unfavourable foreign exchange movement.
Revenue for Q4’22 stood at RM1.63 billion, 9% higher than RM1.50 billion in Q4’21, mainly contributed by higher revenue from the utilities segment as a result of higher product prices in line with higher fuel gas prices.
Gross profit declined by 24% from RM615 million to RM468 million due to lower contribution from all segments following higher operating expenses, mainly relating to fuel gas, internal gas consumption and depreciation ex-penses.
PAT decreased by 5% from RM489 million to RM462 million in line with lower gross profit and partly cushioned by the impact of favourable foreign exchange movement following the strengthening of ringgit in the quarter.
Commenting on the group’s performance, managing director and CEO Abdul Aziz Othman said: “Despite the unprecedented higher gas price and weaker ringgit, PGB still records a healthy level of profit for FY2022. Our commitment to running the plants efficiently, whilst applying cost discipline and optimisation has partly mitigated these higher operating costs.
“As we head into 2023, we will continue these operational initiatives while pursuing growth opportunities to diversify our revenue streams as part of our effort to mitigate the lower returns from the RP2 tariffs.”
Petronas Gas is under the Incentive-based Regulation Regulatory Period 2 effective Jan 1, 2023 until Dec 2025, applicable for its gas transportation and regasification businesses.
Despite the lower tariffs approved by the Energy Commission, the capacity booked for Peninsular Gas Utilisation pipeline, Regasification Terminal Sg Udang and Regasification Terminal Pengerang are underpinned by long-term contracts with existing shippers.