KUALA LUMPUR: Petronas Gas Bhd's (PGB) net profit for the first quarter ended March 31, 2023 (1Q 2023) rose to RM424.18 million from RM410.58 million posted in the same quarter last year due to lower tax expenses.
Revenue jumped 14.9 per cent to RM1.67 billion from RM1.46 billion previously, mainly contributed by higher revenue from the Utilities segment in line with higher product prices.
In a filing with Bursa Malaysia today, PGB said earnings per share also increased by 3.3 per cent to 21.44 sen in 1Q 2023 from 20.75 sen in the previous corresponding quarter, reflecting higher profit attributable to company shareholders.
The company said its board had approved a first interim dividend of 16 sen per ordinary share amounting to RM316.6 million for the financial year ending Dec 31, 2023, to be paid on June 20, 2023.
"The higher Utilities segment was driven by higher steam and industrial gases product prices in line with fuel gas price movement coupled with higher electricity tariff following an upward revision of the Imbalance Cost Pass-Through surcharge for the first half of 2023.
"Gas processing segment revenue increased by 2.4 per cent against corresponding quarter following higher internal gas consumption incentive achieved, supported by continuous operational optimisation efforts," it added.
PGB said its 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.
Moving forward, it said 2023's performance is expected to remain robust, underpinned by the stable-earning contracts, but the high gas prices may impact the group's full-year results.
"The group's gas processing segment is expected to remain stable on the back of its long-term contracts and sustainable income stream under the second term of the Gas Processing Agreement.
"Despite the lower Regulatory Period 2 tariffs, the gas transportation and regasification business segments are anticipated to continue contributing to a healthy group's earnings," it said.
PGB said that high fuel gas prices would continue to impact the utilities segment's performance.
"Amidst the post-pandemic higher operating costs environment, the group will continue to strive for operational excellence as well as to strike the right balance between growth investments, financial prudence and shareholders' distribution," it added.