PETALING JAYA: Petronas Gas Bhd’s (PetGas) net profit for the fourth quarter ended Dec 31, 2019 jumped 61.44% to RM485.27 million from RM300.60 million a year ago on higher share of profit from joint ventures, unrealised forex gain from translation of US dollar lease liabilities and higher interest income from fund investments.
Higher share of profit from joint ventures was attributable to positive contribution from its 60%-owned Kimanis Power Sdn Bhd as a result of the de-recognition of deferred tax assets in the corresponding quarter in relation to time utilisation limit on certain tax benefits, supported by higher profit from the group’s air separation unit in Pengerang, Johor.
The unrealised forex gains mainly arose from translation of US dollar lease liabilities for floating storage units at its LNG regasification terminal Sungai Udang.
Revenue, however, fell 1.1% to RM1.37 billion RM1.39 billion due to lower revenue from gas transportation segment and Pengerang LNG regasification terminal, in line with downward revision of tariffs under Incentive-based Regulation (IBR).
PetGas’ board of directors has approved a fourth interim dividend of 22 sen per share amounting to RM435.3 million and a special interim dividend of 10 sen per share amounting to RM197.9 million.
For the full-year period, its net profit rose 7.94% to RM1.94 billion from RM1.79 billion a year ago, with revenue declining 0.7% to RM5.46 billion from RM5.50 billion.
As announced by the group on Dec 20, 2019, the Energy Commission has approved the IBR tariffs for the Regulatory Period 1 for the gas transportation and regasification services which will commence from Jan 1, 2020 to Dec 31, 2022.
“While the new tariffs are expected to affect the group’s transportation and regasification business segment revenues, both segments are anticipated to continue contributing positively to group’s earnings,“ PetGas said.
The group’s gas processing segment is expected to remain stable on the back of its strong and sustainable income stream under the second term of the 20-year Gas Processing Agreement effective from 2019 until 2023.
At the midday break, PetGas’ share price was unchanged at RM16.22 on 125,300 shares done.
