BUSINESS

Petronas Gas declares a special dividend, solid Q2 results

KUALA LUMPUR, 19 August 2020 – PETRONAS Gas Berhad Group of Companies (PGB) has declared a second interim dividend of 16 sen per ordinary share.

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The group also declared a special interim dividend of 50 sen per ordinary share or a total of RM1.31bn for the quarter ended June 30.

The Group announced a solid Q2 2020 performance amidst the Movement Control Order (MCO) due to the COVID-19 pandemic.

During the quarter, PGB recorded high efficiencies across its four business segments, which resulted in higher performance incentives and lower costs in the period.   

In the second quarter of the year, PGB Group revenue remained at similar level to Q1 2020 at RM1.40 billion, backed by long-term contractual agreements with existing customers. Gross profit was RM675 million, an 11% improvement from RM610 million reported in Q1 2020, attributable to lower operating costs across the business.

PROFIT AFTER TAX

Profit After Tax (PAT) surged 65% to RM574 million in Q1 2020 from RM348 million in the preceding quarter.

PAT was positively affected by unrealised foreign exchange gain and higher share of profit from a joint venture, in addition to the higher gross profit.   

For the six months, the Group registered PAT of RM922 million, lower than RM1.05 billion reported in the same period last year largely due to unfavourable foreign exchange movement.

Excluding the foreign exchange impact, PAT would be higher on lower operating costs.  

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“Our business has proven resilient amidst the current market uncertainties.

Managing Director/Chief Executive Officer
Kamal Bahrin Ahmad

As the Incentive-Based Regulation becomes part of the new norm, we expect steady earnings from our regulated businesses for the next three years. Moving on, PGB looks forward to further improve the utilisation of our facilities and drive cost efficiencies.”   

The Group has recently disclosed on its website the availability of partial capacity transfer from incumbent shipper to interested shippers and customers at its Regasification Terminal Sungai Udang (RGTSU) beginning 2021 until end 2022.

The offer for partial capacity transfer is part of PETRONAS’ commitment to support the Third Party Access system, while the incoming third-party LNG cargoes and the consequent traffic increase at Peninsular Gas Utilisation (PGU) pipeline are envisioned to spur the domestic gas demand from the industries and benefit PGB.   

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PGB will also continue its capital commitments on approved projects. Besides the ancillary services of LNG bunkering and LNG truck loading at the regasification terminals, as well as the new nitrogen unit planned in 2021, for both existing and new customer. 

“We are focused on ensuring activities which were affected by the MCO resume pace by the end of the year. To date, the Group has spent RM434 million on capital expenditure (CAPEX) with the total expected to be around RM1.0 billion by end 2020”, Kamal Bahrin explained. 

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