The company's revenue edged up marginally by 0.65% y-o-y to RM1.65bil.
PETALING JAYA: Petronas Gas Bhd
(PetGas) reported a lower net profit of RM469mil in the second quarter ended June 30, 2024 (2Q24), amid higher operating expenses and inflationary impact.
The gas processor, which is 51% controlled by Petroliam Nasional Bhd (PETRONAS), told shareholders that its net profit in 2Q24 fell by 3.4% year-on-year (y-o-y), although partially cushioned by lower unfavourable foreign exchange movements.
Revenue edged up marginally by 0.65% y-o-y to RM1.65bil. The narrower bottom line reduced earnings per share to 23.7 sen. A dividend of 16 sen was declared in the second quarter.
For the first half of financial year 2024 (1H24), PetGas saw its net profit growing by 1.8% y-o-y to RM925.64mil, despite revenue slipping by 1.4% to RM3.27bil.
The lower revenue was a result of reduced contribution from its utilities segment, driven by reduced product prices in spite of a higher sales volume.
The impact was partly offset by an increased revenue in its gas processing services segment of RM938.67mil, which has benefited from higher reservation charges under new terms.
Higher contribution from its gas transportation services division of RM596.68mil due to upward tariff adjustments also mitigated the impact.
PetGas also announced yesterday the resignation of its chairman Adnan Zainol Abidin, citing “top management mobility within PETRONAS group” as a reason.
It has appointed Datuk Adif Zulkifli as Adnan’s replacement effective immediately.
PetGas expects to maintain a healthy performance for the remainder of 2024, underpinned by stable-earnings contracts and a sustained operational performance.
Nevertheless, the group acknowledged the potential impact of the elevated Malaysia Reference Price and exposure to foreign exchange volatility towards its financial earnings.
Meanwhile, in a separate filing with Bursa Malaysia, Petronas Dagangan Bhd (PetDag) said it planned to sustain its performance in both the retail and commercial segments, bolstered by a projected 4% to 5% expansion in gross domestic product.
PetDag said the Brent crude oil price is anticipated to stabilise around US$80 per barrel by the end of the year.
“The group remains prudent and continues to be vigilant of the potential impacts of domestic regulatory changes, as well as other global macroeconomics and geopolitical developments.”
PetDag said its retail business is strengthening its focus to attract new customers and explore opportunities with strategic partners, while the commercial segment plans to leverage the aviation sector’s recovery and other high-margin industries with its competitive pricing.
For the convenience segment, the group said both Mesra and Setel are on track to further expand the non-fuel business.
In 2Q24, PetDag posted a higher net profit year-on-year to RM276.4mil from RM275.7mil previously.
Revenue for the quarter rose 10.4% y-o-y to RM9.84bil while earnings per share stood at 27.80 sen. The group has declared an interim dividend of 20 sen per share amounting to RM198.69mil for the second quarter, payable on Sept 18.
PetDag said the higher revenue was driven by higher average selling prices, in line with Brent crude oil price which closed at US$84.97 per barrel in 2Q24, an 8.8% increase from 2Q23.
Total volume has increased by 5%, contributed by healthy demand during festive events, successful promotional campaigns and higher volume from airline industry.
The group also experienced reduction in retail diesel volume following the implementation of Subsidised Diesel Control System (SKDS) 2.0 in June 2024, whilst commercial diesel volume registered an uplift, as a result of the higher retail diesel price.
PetDag posted a net profit of RM502.4mil on revenue of RM19.23bil in the first half to June 30.
The group has declared an interim dividend of 20 sen per ordinary share amounting to RM198.69mil for the second quarter, payable on Sept 18.
PetDag is 63.92% owned by PETRONAS.
