KUALA LUMPUR, 27 August 2019 – PETRONAS Gas Berhad (PGB) concluded the first half of the year on a steady note, supported by favourable selling prices and higher fees, coupled with improved plant performance across its businesses.
For the six months ended 30 June 2019, PGB recorded RM2.7 billion in revenue which is partly driven by higher selling prices and volumes from Utilities.
Revenue was also supported by improved reservation charge under the second term of the company’s Gas Processing Agreement with PETRONAS. These offset the impact of lower tariffs under the Incentive-Based Regulation (IBR) for the Gas Transportation segment.
With the full implementation of IBR well underway, gross profit for the six months was 4% lower at RM1.3 billion, while Profit After Tax remained stable at RM1.0 billion.
Revenue for the second quarter in 2019 rose by 2% to RM1.4 billion against the same period last year, as higher income from non-regulated Gas Processing and Utilities businesses offset the income from the regulated Gas Transportation and Regasification businesses.
Profit After Tax for the quarter was lower by 4% at RM515 million as 2018 had included tax incentive granted to LNG Regasification Terminal Pengerang (RGTP).
Against the preceding quarter, Group revenue remained steady while gross profit grew by 9% driven by lower operating cost across the business.
Profit After Tax for the quarter was nevertheless lower, as the preceding quarter included favourable foreign exchange impact at one of the Group’s subsidiaries. Excluding this, profit would be higher in tandem with gross profit.
PGB also announced its second quarter dividend at 16 sen per share.
PGB Managing Director/Chief Executive Officer Kamal Bahrin Ahmad said: “The commencement of gassing-up-cooling-down (GUCD) services at RGTP since April has further enhanced the Group’s revenue stream and concurrently increased the utilisation of our assets.
“We look forward to further developing our RGTP facility as a solutions hub since it is strategically located along the Straits of Johor and close to the nearby Pasir Gudang and Singapore dockyards,” he said.
Apart from offering ancillary services such as GUCD, PGB’s RGTP is also set to deliver primary gas supply to RAPID and Pengerang cogeneration plant, in addition to augmenting the country’s gas supply through the Peninsular Gas Utilisation network.
GUCD is a specialised service to displace inert gas from LNG vessel's storage tank before it is cooled down to cryogenic temperature (-160°C). This process is required for LNG vessels, typically post dry dock, before the vessel’s next LNG cargo loading.
Issued by:
PETRONAS Gas Berhad
