Kuala Lumpur, 20 May 2020 – PETRONAS Gas Berhad Group of Companies (PGB or the Group) reported higher revenue during the first quarter ended 31 March 2020.
During the quarter, the Group implemented higher tariffs under the Regulatory Period 1 (RP1) effective 1 January 2020 until 31 December 2022 for its regulated businesses, Gas Transportation and Regasification. The higher tariffs include internal gas consumption (IGC) recovery, which is a pass-through cost. Prior to RP1, IGC was borne directly by the shipper or capacity user.
PGB also recorded high plant efficiencies at its Gas Processing complex, which resulted in higher performance incentives for the segment.
Revenue stood at RM1.40 billion against RM1.37 billion in Q1FY2019, following higher revenue from Gas Processing business, coupled with higher contribution from the Regasification segment in line with higher tariffs. This has, in turn, mitigated the lower revenue from Utilities segment on lower sale of electricity.
Gross profit improved by 6% in line with higher revenue coupled with lower operational costs.
Profit After Tax (PAT) for the quarter was RM348 million, 34% lower than the same quarter last year at RM531 million, as the company was affected by weaker Ringgit against US Dollar which 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.
PGB has announced an interim dividend of 16 sen per share for the company’s first quarter in
FY2020, signalling the Group’s sound business fundamentals amidst challenging times.
Commenting on the Group’s performance, PGB Managing Director/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, we have continued to run our 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.
“Moving forward, our aim remains to be the solutions partner to our customers while sustaining good operational performance at all of our assets. We are also committed to ensure delivery of the projects which have been approved as these are necessary to sustain PGB’s strong position into the future,” Kamal Bahrin added.