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PetGas sees higher tax expense in Q2

27 Aug 2019 / 15:31 H.

PETALING JAYA: Petronas Gas Bhd’s (PetGas) net profit for the second quarter ended June 30, 2019 fell 1.3% to RM502.90 million from RM509.33 million a year ago as a result of higher tax expense.

Its revenue was higher by 1.6% at RM1.38 billion compared with RM1.36 billion in the previous corresponding quarter, mainly driven by utilities and gas processing segments, offset by lower revenue from gas transportation and liquefied natural gas (LNG) regasification Pengerang under the Incentive-based Regulation (IBR).

PetGas said utilities revenue improved on the back of higher demand from customers and upward fuel gas price revision while the rise in gas processing revenue was supported by higher reservation charge under the second term of the gas processing agreement.

It has approved a second interim dividend of 16 sen per share amounting to RM316.6 million in respect of the financial year ending Dec 31, 2019.

For the six-month period, the group’s net profit went up 2.6% to RM1.02 billion from RM992.55 million in the same period last year, with revenue increasing 1.4% to RM2.75 billion from RM2.71 billion.

The Energy Commission has approved the tariffs for the gas transportation and regasification services for the pilot regulatory period in 2019.

“While the tariffs are expected to affect the group’s transportation and regasification business segment revenues in 2019, both segments are anticipated to continue contributing positively to the group’s earnings,“ PetGas said.

The group’s gas processing segment is expected to deliver improved earnings pursuant to the higher fixed reservation charge under the second term of the 20-year gas processing agreement effective from 2019 until 2023.

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