KUALA LUMPUR, Aug 26 – Petronas Gas Bhd's (PetGas) net profit declined to RM396.50 million in the second quarter ended June 30, 2022 (Q2 2022) from RM439.07 million a year earlier, due to higher effective tax rate following the imposition of Prosperity Tax for assessment year 2022.

 

Revenue for the quarter increased to RM1.50 billion against RM1.38 billion in Q2 2021, mainly driven by higher revenue from its utilities segment.

 

Its earnings per share also reduced to 20.04 sen in Q2 2022 from 22.19 sen in Q2 2021.

 

In a filing with Bursa Malaysia today, PetGas said its utilities segment's revenue grew by 35.5 per cent or RM110.7 million during the quarter, mainly attributable to higher product prices and higher electricity sales volume. 

 

"Product prices were higher in line with the fuel gas price which is based on the reference market price, while the electricity sales volume increased following the commencement of electricity supply to the grid under the New Electricity Despatch Arrangement from August 2021 onwards," it said.

 

Meanwhile, the group's gas processing plants had maintained their world-class operational performance, recording 100 per cent reliability and a 2.3 per cent or RM9.8 million increase in revenue year-on-year due to higher internal gas consumption incentive achieved.

 

PetGas' liquefied natural gas regasification terminals in Sg Udang, Melaka and Pengerang, Johor sustained their strong reliability performance at close to 100 per cent during the quarter.

 

In terms of the first half of 2022 (1H2022), PetGas also recorded a lower net profit of RM807.08 million versus RM955.47 million in 1H2021.

 

Moving forward, PetGas said it expects to remain resilient on the back of long-term contracts which ensures steady revenue streams, particularly for gas processing, gas transportation and regasification business segments.

 

The group highlighted that it has renewed several long-term utilities' contracts, which improved the segment margin for Q2 2022's performance amidst higher fuel gas costs.

 

Nevertheless, the anticipated rise in the Malaysia Reference Price, weakening trend of the ringgit against US dollar and imposition of Prosperity Tax may further impact the overall group's performance, added PetGas.

 

"The group will continue to focus on excellent operational performance and remain committed to ensuring a sustained level of returns to our shareholders," it said.

 

 - Bernama