Petgas Profit For Q1 Declines 19% Following Higher Operating Cost And Fuel Price

The Group maintained its world-class reliability performance across all its plants and facilities during the quarter under review. Group revenue rose by 8.8% or RM117.9 million to RM1,457.9 million mainly driven by higher revenue from the
Utilities segment. Utilities revenue improved as a result of higher product prices and higher electricity sales volumes
recorded.

Gross profit decreased by 14.1% or RM100.1 million on the back of a lower Utilities margin following higher fuel gas price coupled with higher operating costs at Gas Processing, Gas Transportation, and Regasification segments. PBT declined by 12.3% or RM82.2 million in tandem with lower gross profit, partially negated by the impact of favourable foreign exchange movement.

Profit for the quarter decreased by 19.0% or RM102.4 million with lower PBT as well as a higher effective tax rate with the imposition of Prosperity Tax for the year of assessment 2022.

PGB Group’s performance in 2022 is expected to remain resilient despite the ongoing pandemic as the Group’s business model and long-term contracts ensure steady revenue streams, particularly for Gas Processing, Gas Transportation, and Regasification business segments. The Group’s Gas Transportation and Regasification business segments are anticipated to continue contributing positively to the Group’s earnings under Regulatory Period 1 (RP1) tariffs which is effective until 31 December 2022.

The Group’s Gas Processing segment is expected to remain stable on the back of its strong and sustainable income stream under the 2nd Term of the 20-year Gas Processing Agreement effective from 2019 until 2023. The Group’s Utilities segment contribution may be affected by customer demand and fuel gas price, which is a non-pass through cost for electricity sales. The Group is in the midst of finalising the renewal of several long-term contracts for the Utilities segment to be concluded this year, which are anticipated to have a positive impact on the segment

Previous articleKobay Revenue Hits RM100.1 Million Rising 184% YoY As It Benefits From Semicon Demand
Next articleThe Bears in Driver’s Seat for KLCI Futures: RHB Research

LEAVE A REPLY

Please enter your comment!
Please enter your name here