Petronas Gas' FY20 net profit jumps to RM2.01 bln

Revenue rose 2.5 per cent to RM5.59 billion from RM5.46 billion previously, supported by sustained revenue streams and lower costs, it said in a filing with Bursa Malaysia today.

"Revenue from Regasification and Gas Transportation segments increased by RM182.5 million, in line with new tariffs for Regulatory Period 1 (RP1) effective Jan 1, 2020.

"However, these were offset by lower revenue from the utilities segment due to lower excess electricity sold," it said.

PetGas said its board has approved a fourth interim dividend of 22 sen per ordinary share amounting to RM435.3 million, and a special interim dividend of 5.0 sen per ordinary share amounting to RM98.9 million in respect of the FY20 performance.

On the fourth quarter (Q4) results, PetGas’ reported that its net profit rose to RM503.35 million compared with RM485.27 million in Q4 2019.

Revenue for the quarter improved to RM1.39 billion from RM1.37 billion previously, in line with new tariffs for the RP1.

On prospects, it said the Gas Transportation and Regasification business segments are anticipated to continue contributing positively to the group’s earnings under the RP1 tariffs.

Its 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.

Meanwhile, the group’s Utilities segment contribution will be driven by customer demand, underpinned by economic conditions.

"The COVID-19 pandemic is not expected to significantly impact the group’s overall earnings as the group’s business model and long-term contracts ensure steady revenue streams, particularly for Gas Processing, Gas Transportation and Regasification business segments," it added.