KUALA LUMPUR: Petronas Gas Bhd
’s (PetGas) performance in 2024 is expected to remain healthy, underpinned by the stable-earning contracts and sustained operational performance.
The group noted that the elevated Malaysia Reference Price (MRP), which highly correlates with fuel gas price movement, will impact the utilities segment’s performance.
“The group remains committed to optimising cost efficiencies to minimise the impact of an inflationary operating cost environment. The exposure to foreign exchange volatility has minimal impact on financial performance following full settlement of lease liabilities for floating storage units in May 2023,” PetGas said in a filing with Bursa Malaysia.
In the second quarter to June 30, PetGas' net profit dipped 3.4% year-on-year (YoY) to RM469mil as revenue 0.65% to RM1.65bil.
In the first six months, it posted a net profit of RM925.6mil, up 1.8% from RM909.5mil while revenue declined 1.4% to RM3.27bil against RM3.31bil a year earlier.
PetGas said the lower revenue was mainly due to lower earnings in the utilities segment, driven by reduced product prices despite higher sales volumes.
However, the impact was offset by increased revenue from gas processing, which benefited from higher reservation charges under new terms, as well as higher tariffs in gas transportation.
“Our results demonstrate PetGas’ continued delivery of operational excellence. We are poised to continue the commendable performance throughout the remainder of 2024,” managing director and CEO Abdul Aziz Othman said in a statement.
PetGas has declared a second interim dividend of 16 sen per share, consistent with the previous quarter, reflecting its commitment to providing value to shareholders
Separately, PetGas has appointed Datuk Adif Zulkifli,54, as its chairman, succeeding Adnan Zainol Abidin, effective immediately.
Adnan has resigned from the position due to “top management mobility within PETRONAS Group”.
