Abdul Aziz Othman — Photo from petronas.com/pgb
KUALA LUMPUR (May 20): Petronas Gas Berhad Group of Companies (PGB or the Group) posted Profit After Tax (PAT) of RM438 million on the back of RM1.46 billion revenue for the first quarter of 2022.
The results were attributed to strong operational performance and steady revenue streams from long-term contracts. PGB also declared an interim dividend of 16 sen per share, equivalent to RM316.60 million, similar to the same quarter last year, highlighting the Group’s resilience in sustaining its performance amidst challenging market conditions.
For the first quarter which ended on 31 March 2022, PGB Group revenue stood at RM1.46 billion, higher than RM1.34 billion in the same quarter last year. The growth in revenue was primarily contributed from the Utilities business which saw increasing product prices in line with the increase in fuel gas price and higher electricity sales volume. In comparison to the preceding quarter, Group revenue was comparable with Q4 FY2021 revenue of RM1.50 billion.
Gross profit for the quarter was RM612 million against RM712 million in Q1 2021 due to lower margins recorded by the Utilities segment. This follows higher fuel gas costs for electricity supply in line with market. PAT for the quarter stood at RM438 million against RM540 million in Q1 2021.
Comparing to the preceding quarter, gross profit for the first quarter of 2022 was similarly comparable against RM615 million registered in Q4 2021. PAT was lower against RM488 million in Q4 2021 owing to slightly lower share of profit from joint venture companies as well as higher effective tax rate due to impact of Cukai Makmur applicable for 2022.
Commenting on the Group’s performance, managing director and chief executive officer Abdul Aziz Othman said, “PGB’s financial performance in the first quarter of 2022 reflects our commitment to operational excellence and cost management despite the challenging market conditions. We concluded several contract renewals with our long-term Utilities customers for Quarter 1.
“Moving forward, we target to complete the remaining Utilities contract renewals this year which should contribute more positively to the segment, on top of exploring commercial opportunities outside our captive market. We are also sharpening the focus on cost management and efficiency throughout the Group this year, to effectively address cost or price increases.”
PGB’s performance in 2022 is expected to remain resilient in enduring the challenging market condition. This is driven by the increase in customer demand as well as the Group’s business model and long-term contracts that ensures steady revenue streams particularly for Gas Processing, Gas Transportation and Regasification business segments.
PGB was incorporated in 1983 as a wholly owned subsidiary of Petronas and listed on the main market of Bursa Malaysia on Sept 4, 1995.
PGB is 51 per cent owned by Petronas, while the remaining shares are held by other institutional investors and retail shareholders.
It is Malaysia’s leading Gas Infrastructure and Utilities company with core businesses in Gas Processing, Gas Transmission and Regasification.
The Company processes natural gas piped from offshore fields and transports the processed gas via the Peninsular Gas Utilisation (PGU) pipeline network to Petronas’ customers in Malaysia and Singapore.
In addition, the Group also supplies steam, power, and industrial gases for its customers at Kertih Integrated Petrochemical Complex in Terengganu and Gebeng Industrial Area in Pahang. — Bernama