PetGas posts higher net profit of RM591.01 mln in Q3

KUALA LUMPUR: Petronas Gas Bhd (PetGas) posted a higher net profit of RM591.01 million in the third quarter ended Sept 30, 2020 (Q3) against RM431.59 million registered in the same quarter last year.

Revenue rose to RM1.41 billion from RM1.34 billion previously due to higher revenue from regasification and utilities segment in line with new tariffs for Regulatory Period 1 (RP1) effective Jan 1, 2020 and higher steam and industrial gases sales volume respectively, it said.

“Gross profit was higher by 30.6 per cent or RM172.4 million with higher contribution from all segments, particularly regasification and gas processing segments due to lower operating costs,” the company said in a filing to Bursa Malaysia today.

On prospect, PetGas said the COVID-19 pandemic was not expected to significantly impact the Group’s overall earnings as its business model and long-term contracts ensures steady revenue streams, particularly for gas processing, gas transportation and regasification business segments.

The transportation and regasification business segment were anticipated to continue contributing positively to the Group’s earnings under the RP1 tariffs, it said.

The gas processing segment, it added, would 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.

-- BERNAMA