Petronas Gas net profit higher KL shares at RM1.82 bln in FY23

KUALA LUMPUR: Petronas Gas Bhd’s (PGB) net profit rose to RM1.82 billion in the financial year ended Dec 31, 2023 (FY2023) from RM1.65 billion in FY2022 on the back of continued operational excellence, robust margin from the utilities segment and higher contribution from joint-venture companies.

The better profit was also due to lower financing costs, lower impact from unfavourable foreign exchange movement following the early settlement of US dollar lease liability for floating storage at liquefied natural gas (LNG) regasification terminal in Sg Udang, Melaka, as well as lower tax expense.

In a filing with Bursa Malaysia, the oil and gas company said its revenue increased 4.6 per cent to RM6.45 billion in FY2023 from RM6.16 billion in the previous year, mainly contributed by revenue from the utilities segment as a result of higher product prices in tandem with elevated fuel gas price.

“Electricity tariff for the year was also higher in line with the upward revision of imbalance cost pass- through (ICPT) surcharge,” it said.

In the fourth quarter of 2023, PGB’s net profit was higher at RM441.59 million compared with RM412.55 million in the same quarter 2022, while revenue slipped 3.1 per cent to RM1.58 billion from RM1.63 billion previously.

The lower revenue was largely attributable to lower contribution from utilities due to lower products’ price and customers’ o ake, and lower regasification revenue which was in line with lower second regulatory period (RP2) tariff.

The group has declared an interim dividend of 22 sen per share for the fourth quarter of 2023 payable on March 25, 2024, thus bringing the total FY2023 dividend distribution to 72 sen.

Moving forward, managing director and chief executive officer Abdul Aziz Othman in a separate statement said PGB has recorded a strong financial performance in FY2023 despite the challenging business environment.

He said PGB is committed to enhancing the reliability, safety and efficiency of its plant operations to further fortify its resilience and ensure sustainable revenue with healthy margins.

“We are also exploring opportunities for growth within the National Energy Transition Roadmap (NETR). The group has also initiated our efforts into pursuing a greener portfolio to support our target to achieve Net Zero Carbon Emission by 2050,” he added.