In the second quarter of 2021, Malaysia’s Petronas Gas Bhd saw its net profit fall by 19.7% year-on-year to MYR439.07 million (USD104 million) on the back of lower gross profit and unfavorable foreign exchange movement.
Revenue was a tad lower at MYR1.38 billion (USD327 million), compared to MYR1.39 billion (USD329 million) in the same period a year ago. Earnings per share (EPS) went down to 22.19 sen, compared to 27.65 sen. An interim dividend was declared at 16 sen, from 66 sen a year ago.
The gas processing segment revenue was stable at MYR427.9 million (USD101.4 million) while results dipped by 14.7% or MYR36.8 million (USD8.7 million) on the back of higher operating costs, mainly depreciation expense.
The gas transportation segment revenue was comparable at MYR291.3 million (USD69 million) while segment results declined by 13.8% year-on-year or MYR28.6 million (USD6.77 million) due to higher operating costs, mainly maintenance costs in line with a higher level of planned activities.
The group’s liquefied natural gas (LNG) regasification terminals in Sg. Udang, Melaka (RGTSU) and Pengerang, Johor (RGTP) showed a 0.9% growth annually in revenue or MYR3.2 million (USD758,310), under the support of the introduction of new revenue streams from LNG reloading at RGTSU and truck loading at RGTP.
However, the segment results plunged by 17.5% or MYR29.4 million (USD6.96 million) against the backdrop of higher operating costs, largely attributable to internal gas consumption costs.
The utility plant registered a 5% fall in revenue or MYR16.4 million (USD3.88 million), on account of weaker product prices following a downward adjustment of fuel gas price as a result of changes in pricing from regulated price to reference market price amidst higher sales volumes from new customers.
The segment’s result, however, skyrocketed by 39.4% or MYR19.8 million (USD4.69 million) on the back of the favorable margin impact of lower fuel gas costs and lower depreciation expense.
The company’s two of joint venture companies, Kimanis Power Sdn Bhd (KPSB) and Pengerang Gas Solutions Sdn Bhd (PGSSB) also saw a lower share of profit.
In the first half, Petronas Gas posted a 4.4% yearly increase in its net profit at MYR955.47 million (USD226.4 million). Profit before tax climbed by 7.5% to MYR1.24 billion (USD293.8 million) as the higher gross profit was further supported by the impact of favorable foreign exchange movement.
Gross profit jumped by 2.2% or MYR27.8 million (USD6.587 million) year-on-year as the utility segment recording significantly higher contribution, helped by higher margins and lower operating costs.
However, the revenue dipped by 2.6% to MYR2.7 billion (USD644.57 million), mostly on account of lower revenue from the utility segment in line with lower product prices amidst higher sales volume.
