PETRONAS Gas Berhad (PGB) recorded a Profit After Tax (PAT) of RM448 million in the first quarter of 2023, translating to a 2% increase from the same quarter in 2022. The Group also declared an interim dividend of 16 sen per share, equivalent to RM316.6 million, similar to the same quarter last year, highlighting PGB’s resilience in sustaining its performance in the course of challenging market conditions.
Utilities segment recorded higher revenue driven by higher Malaysia Reference Price (MRP) which reached its peak of RM58/MMBtu in Q1. The higher revenue was partly offset by higher cost of gas which is only partially passed through to customers.
At the same time, PGB recorded lower revenue from its regulated business, as the Group underwent the second RP2 under the Incentive-Based Regulation (IBR) framework from 1 January 2023 until 31 December 2025 which translated into lower tariff charged by PGB. The Gas Transportation and Regasification segments also impacted from the higher gas cost.
PGB’s Q1 2023 Group Revenue was RM1.67 billion, 15% higher than Q1 2022, mainly contributed by higher revenue from the Utilities sector in accordance with higher product prices. Gross profit was RM547 million, lower by 11% compared to Q1 2022 primarily due to higher operating expenses as mentioned above. Nevertheless, PAT improved by 2% or RM10.7 million contributed by increased interest income from fund investments, a greater proportion of profit from joint venture companies and a decrease in tax expense as the Prosperity Tax imposed in 2022 is no longer applicable for this year.
Commenting on the Group’s performance, Managing Director and Chief Executive Officer Abdul Aziz Othman said, “Despite the MRP at its peak in Q1 2023, we xpect the MRP to taper in the following quarters while still at an elevated level. PGB’s performance is expected to remain robust and healthy, underpinned by our continued focus on operational excellence and stable-earning contracts.”
On the longer-term direction of the company, “PGB is actively pursuing identified opportunities that leverage on our intrinsic knowledge and capabilities. We also expect to play a vital role in PETRONAS carbon capture and storage value chain,” Aziz added.
