PGB Strong Performance And Robust Business Model Provide Certainty Amidst Challenging Environment

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Kuala Lumpur, 25 June 2020 – PETRONAS Gas Berhad (PGB or the Group) ended 2019 with a commendable performance, achieving Profit After Tax of RM2.0 billion, 5% higher than the previous year. With higher profits and strengthened balance sheet, the Group declared total dividends of 82 sen per share for the year including a special dividend of 10 sen per share which translates to a dividend payout ratio of 84% compared to 79% in 2018, the highest ever in history.

The Group has proven to be a capable and prudent operator, through a flawless transition from an unregulated into a new Third Party Access (TPA) regulated environment last year.

PETRONAS Gas Berhad (PGB) held its 37th Annual General Meeting (AGM) virtually today to present the Company’s performance to its shareholders for the financial year ended 31 December 2019. The AGM was chaired by PGB Chairman, Encik Adif Zulkifli, who is also PETRONAS’ Executive Vice President & CEO Upstream, together with PGB Managing Director/Chief Executive Officer, Encik Kamal Bahrin Ahmad and Chief Financial Officer, Puan Shariza Sharis Mohd Yusof.

Presenting the company’s performance, Kamal Bahrin said “PGB’s resilience was the result of operational and commercial excellence driven by our ongoing game plan – 301Q99 Pushing Forward. By adhering to this game plan and pushing forward with our growth initiatives, we continued to grow from strength-to-strength, becoming a leaner and more efficient organisation that is prepared for market liberalisation and the accompanying challenges”.

Despite a slowdown in energy demand and business operations in Malaysia as well as having to operate at a minimum workforce due to COVID-19 pandemic and the Movement Control Order, PGB continued to run our operations safely and effectively during these unprecedented times, ensuring continuity of gas supply delivery to the nation and its people.

On PGB’s 2020 outlook, Kamal Bahrin explained that PGB’s strong operational performance and robust business model where Regulatory Period 1 (RP1) tariffs provides certainty on revenue for the next three years. With majority of the Group’s business being fully secured by long term contracts and stable revenue streams, PGB is not expected to be impacted by the prevailing market challenges and uncertainties.

“Moving forward, our aim remains to be the solutions partner to our existing customers. While sustaining good operational performance at all of our assets, we are committed to ensure timely project completion to fulfill our commitment to our new customers,” Kamal Bahrin added.