KUALA LUMPUR: Petronas Gas Bhd
said it expects a robust performance in 2023, underpinned by stable-earnings contracts, although the high gas price may impact the full-year result.
In a filing with Bursa Malaysia, the gas merchant said its gas processing segment is expected to remain stable on the back of its long-term contracts and sustainable income stream under the second term of the gas processing agreement.
Meanwhile, the gas transport and regasification business segments are expected to contribute to healthy group earnings, despite lower RP2 gas tariffs.
However, it said the utilities segment will continue to be impacted by the high fuel gas price.
"Despite the Malaysia reference price (MRP) at its peak in Q1 2023, we expect the MRP to taper in the following quarters while still at an elevated level.
"PETRONAS Gas’ performance is expected to remain robust and healthy, underpinned by our continued focus on operational excellence and stable-earning contracts,” said managing director and CEO Abdul Aziz Othman in a press statement.
In the first quarter of the 2023 financial year, ended March 31, the group said net profit was RM424.18mil, up from RM410.58mil in the same quarter last year.
The group's net profit represented an earnings per share of 21.44 sen, as compared with 20.75 sen in the comparative quarter.
PETRONAS Gas attributed the higher bottomline to increased interest income from fund investments, a greater proportion of profit from joint venture companies and a decrease in tax expense as the Prosperity Tax imposed in 2022 is no longer applicable in 2023.
However, pre-tax profit was lower at RMRM556.94mil compared with RM588.3mil in 1QFY22, owing to higher operating expenses.
The board of directors declared an interim dividend of 16 sen per share, with entitlement date on June 7, 2023, and payable on June 20, 2023.
Meanwhile, the group reported revenue of RM1.67bil, as compared with RM1.46bil in 1QFY22.
