PetGas bottom line increases to RM483mil
PETALING JAYA: Petronas Gas Bhd (PetGas) recorded a 4.3%-higher bottom line at RM483.22mil in the first quarter ended March 31, largely on the back of its stronger revenue.
Higher contribution from its regasification business segment has also helped to raise the earnings of the subsidiary of Petroliam Nasional Bhd (Petronas).
However, this was partially offset by higher finance costs and lower share of profit from a joint venture company.
The higher finance costs seen by PetGas in the quarter was caused by discontinued capitalisation of interest expense, following the operationalisation of the group’s new liquified natural gas (LNG) regasification terminal.
As for PetGas’ top line, it rose at a stronger pace of 15.5% to RM1.35bil in the quarter under review from RM1.17bil a year earlier.
This was mainly contributed by the group’s new LNG regasification terminal in Pengerang, Johor which started commercial operations in November last year.
The company said in its filing with the stock exchange that its gas processing, transportation and regasification plants continued to perform well above 99% reliability.
Moving forward, PetGas’ performance is expected to remain stable on the back of its strong and sustainable income streams from existing gas processing agreement, gas transportation agreements and regasification service agreement signed with Petronas.
“The Energy Commission has confirmed that the current tariffs for the group’s gas transportation and regasification services will be maintained until end of 2018,” the company said.
It said it was in continuous discussion with the commission to finalise the tariff guidelines for gas transportation and regasification services beyond 2018.
“PetGas’ utilities segment will continue to contribute positively to the group’s results.
“The group’s regasification segment results will benefit from full year contribution of the new LNG regasification terminal in Pengerang, Johor,” stated the company.
PetGas’s earnings per share inched up slightly to 24.42 sen in the quarter, as compared to 23.24 sen a year earlier.
The company declared a dividend of 16 sen for the quarter. PETALING JAYA: Boustead Heavy Industries Corp Bhd (BHIC) recorded a 67% jump in net profit to RM4.5mil for its first quarter ended March 31, 2018 (1Q18), compared with RM2.7mil in the corresponding quarter last year.
Revenue for the quarter under review stood at RM39.7mil, which was 48% lower than the corresponding quarter last year.
The higher revenue in 1Q17 was largely attributable to defence-related maintenance, repair and overhaul (MRO) activities.
BHIC’s joint venture companies posted a higher contribution of RM2.6mil in the current period as compared with RM1.8mil in last year’s corresponding period, owing to favourable foreign exchange translations arising from trade payables.
The group’s commercial segment showed an improvement in its operating results with a lower pre-tax loss of RM431,000 in 1Q18 as compared to last year’s corresponding period loss of RM1.1mil.
The segment’s improved results can be attributed to new MRO works on foreign boats, local ferries and government vessels that were executed by its associates.
Reflective of the downturn in the oil and gas industry, the group’s energy division did not undertake any new projects during the quarter under review.
BHIC’s associates in the defence segment posted higher profit in the first quarter of the year mainly due to the solid progress achieved for the Royal Malaysian Navy’s Littoral Combat Ship project as well as the additional profit recorded for KD Mahawangsa upon completion of the cost verification process by the RMN.
In a press release yesterday, BHIC executive deputy chairman and managing director Tan Sri Ahmad Ramli Mohd Nor said the group’s performance was largely attributable to strengthened contribution from its business segments, which was particularly significant given the challenging operating environment.
“The group’s mutual separation scheme exercise aimed at identifying the optimal organisational structure for BHIC has borne fruit particularly as we were able to successfully match the size of our human capital to the current market conditions and business prospects.
“This should lead to further enhanced efficiencies which will enable the group to improve its operating cost and subsequently its bottom line,” he said.