Petronas Gas Berhad Group of Companies (PGB or the Group) announced improved Q3 2020 results on stable operations and efficiencies across its four business segments. The Group also secured higher performance incentives on lower operational costs during the quarter.
Comparing against the preceding Q2 2020, Q3 2020 revenue remained resilient at RM1.41 billion on sustained business performance. Gross profit was 9 percent higher at RM736 million against RM675 million, driven by lower operating costs from Gas Transportation and Regasification segments. Profit After Tax (PAT) for Q3 FY2020 was 12 percent higher at RM640 million against RM574 million, as higher gross profit was further impacted positively by unrealised foreign exchange movement.
For the results against the same quarter last year, PGB’s RM1.41 billion revenue was up 5 percent from RM1.34 billion recorded in Q3 2019 following higher contribution from Regasification and Utilities segments.
Gross profit improved 31 percent from RM563 million to RM736 million, largely driven by lower depreciation and operating costs. PAT registered 44 percent increment from RM446 million in Q3 2019 to RM640 million as unrealised foreign exchange gain added on to the gross profit.
For the nine months under review, the Group registered RM4.20 billion revenue against RM4.09 billion in 2019. Gross profit rose 11 percent to RM2.02 billion from RM1.81 billion. PAT also saw a 5 percent increase to RM1.56 billion from RM1.49 billion despite being slightly affected by unfavourable foreign exchange movement.
PGB declared a third interim dividend of 18 sen per ordinary share amounting to a total of RM356.2 million for the quarter ended 30 September 2020.
Managing Director/Chief Executive Officer Kamal Bahrin Ahmad said, “We expect our performance for the remaining months to be stable, backed by our efficient operations and long-term commercial arrangements,” adding that the stable performance is further amvvsgasggaplified by the Company’s digital strategy.
The Group’s regasification facilities at Sungai Udang, Melaka and Pengerang, Johor are part of Petronas’ newly introduced Virtual Pipeline System (VPS) that delivers Liquefied Natural Gas (LNG) using cryogenic trucks fitted with ISO tanks to off-grid and small-scale customers located away from the main gas pipelines. Another additional new business is the LNG Bunkering Vessel (LBV) service, which allows for ship-to-ship LNG transfer to the LBV as well as LNG break-bulking and reloading for smaller LNG vessels.
These facilities serve as a one-stop centre for loading and logistic services to the customers who opt for LNG as an alternative form of cleaner energy.
“We look forward to our role in the Petronas integrated services in providing reliable and cost-competitive cleaner energy solutions to the customers. This is in line with Petronas Group’s commitment to sustainability”, Kamal Bahrin explained.