Media Release

KUALA LUMPUR, 26 April 2016 - PETRONAS Gas Berhad (PGB), which is 60.66% owned by PETRONAS, recorded another illustrious year for the financial year ended 31 December 2015 (FY2015), testifying to the Group's strong standing among the prominent corporations listed on Bursa Malaysia.

 

The Group's revenue sustained at RM4.5 billion, an improvement of 1.5% from RM4.4 billion in FY2014. Profits rose 7.8% to RM2.0 billion, mainly attributed to tax incentives for the Plant Rejuvenation and Revamp (PRR) project which was fully completed in early 2015.

 

"Despite the gloomy global economic situation, the respectable FY2015 performance was achieved on account of accrued benefits arising from the implementation of both the Gas Processing Agreement (GPA) and Gas Transportation Agreements (GTA) effective from 1 April 2014," said PGB Chairman, Tan Sri Dato' Seri Shamsul Azhar Abbas.

 

Meanwhile, its 3ZERO100 PGB Transformation programme, which commenced in late 2014, is progressing well helping the Group to deliver sustainable results.

 

The Company recorded improved ethane delivery under its Gas Processing segment, commendable reliability and availability of the Company's Utilities facilities and sustaining the world class performance of its Gas Transmission. Significant reliability improvement was also demonstrated at its Regasification facility.

 

In addition, good progress was also noted in the standardisation and alignment of Work Process and Operational Excellence Management System across the Company. Emphasis is also given towards shaping culture and nurturing capabilities to ensure sustainable safe and reliable performance of the organisation.

 

Besides the Plant Rejuvenation and Revamp (PRR) project, PGB's growth project which supports PETRONAS Refinery and Petrochemical Integrated Development (RAPID) in the Pengerang Integrated Complex (PIC) in Pengerang, Johor is progressing per schedule. This comprises the construction of two storage tanks for the LNG Regasification Terminal (RGT) and associated regasification facilities.

 

Its Pengerang Gas Pipeline Project is also on track and is expected to be completed this year. This will enable the initial supply of gas from the existing Peninsular Gas Utilisation (PGU) pipeline network to Pengerang, and vice versa. In addition, the Group is expected to achieve Final Investment Decision by the second quarter of 2016 for its Air Separation Unit project, also in Pengerang, for which the Heads of Agreement was signed in 2014.

 

The Group's resilience, coupled with supports from its shareholders, have enabled PGB to achieve an increase in market capitalisation to RM45.0 billion as at end 2015, further bolstering the prominence of the Group's brand in Corporate Malaysia. In light of this, a dividend of 60 sen per ordinary share for the year was approved, representing a normalised dividend payout ratio of 77.0% – a level that is on par with, if not better than, the industry average.

 

Moving forward, Managing Director/Chief Executive Officer, Yusa' said, "The Group immediately reacted to the changing landscape of the oil and gas industries particularly in maintaining cost competitiveness and stretching its limit to accelerate the transformation programme to achieve stronger sustainable operational excellence and safety performance.

 

"Although the global oil and gas sector is expected to remain in slow for an extended period, comfort can be derived from the GPA and GTA, which provide stability on our revenue base, particularly from the Gas Processing (GP) and Gas Transportation (GT) segments. Indeed, we opine that these business activities are sustainable for the foreseeable future, given the stable outlook for gas as an essential component in power generation and industry.

 

"In addition, the Group will continue to focus on long term sustainability efforts with the aim to improve productivity and efficiency towards realising its vision of becoming A Leading Gas Infrastructure and Utilities Company," said Yusa'.

 

 

 

 

 

PGB was incorporated in 1983 as a wholly-owned subsidiary of PETRONAS and listed on the main market of the Bursa Malaysia on 4 September 1995. The Company is 60.66% owned by PETRONAS while the remaining shares are held by other institutional investors and retail shareholders.

 

It is Malaysia's leading Gas Infrastructure and Utilities company with core businesses in Gas Processing, Gas Transmission and Regasification. The Company processes natural gas piped from offshore fields and transports the processed gas via the Peninsular Gas Utilisation (PGU) pipeline network to PETRONAS' customers in Malaysia and Singapore.

 

In addition, the Group also supplies steam, power and industrial gases for its customers at Kerteh Integrated Petrochemical Complex in Terengganu and Gebeng Industrial Area in Pahang.

 

PGB operates from its head office at the PETRONAS Twin Towers in Kuala Lumpur as well as nine regional offices in Peninsular Malaysia and two in East Malaysia.