Media Release

 

KUALA LUMPUR, 19 November 2019 – PETRONAS Gas Berhad (PGB) reported stable revenue and profit in the third quarter ended 30 September 2019.

 

During the period under review, the Company has successfully and safely completed scheduled statutory Turnaround activities at one of its gas processing plants and its Air Separation Units (ASU), both in Kertih, Terengganu; as well as other planned maintenance activities at other facilities. In addition, its plant rejuvenation activities at the Gas Processing Santong complex, also in Terengganu is also progressing well.

 

Revenue for the quarter stood at RM1.34 billion, 3 per cent lower than the preceding quarter (Q2 2019) at RM1.38 billion, mainly attributable to lower contribution from the Utilities segment on lower sales volumes. Profit after tax at RM446 million was 14% lower than the preceding quarter (Q2 2019) at RM515 million, in tandem with revenue and higher operating costs.

 

Against the corresponding quarter (Q3 2018) revenue at RM1.40 billion, Q3 2019 revenue at RM1.34 billion was lower by 5%, largely due to lower revenue from the Gas Transportation and Utilities segments with the implementation of Incentive-based Regulation (IBR) and lower sales volumes respectively. This was mitigated by higher Gas Processing revenue on improved reservation charge under the second term of the Gas Processing Agreement with PETRONAS.

 

Profit after tax declined by 15% against corresponding quarter (Q3 2018) profit at RM523 million, with higher operating costs in line with planned statutory Turnaround and maintenance activities, offset by a higher share of profit from a joint venture following commercial operation of ASU in Pengerang, Johor since Q1 2019.

 

Similarly, for the nine months of 2019, revenue stood comparable at RM4.09 billion (against RM4.11 billion of the corresponding period) while profit after tax was RM1.49 billion, 5% lower than the corresponding period at RM1.57 billion. The nine months also included revenue from ancillary services offered by the company's two regasification terminals in Sungai Udang, Melaka and Pengerang.

 

PGB has announced an interim dividend for the third quarter of 18 sen per share. This follows earlier interim dividends declared and paid of 16 sen each for the first and second quarters.

 

Commenting on the Company's performance, PGB Managing Director/Chief Executive Officer Kamal Bahrin Ahmad said: "We are focusing our effort to become the solutions partner to our customers while sustaining good operational performance at all of our assets. The Turnaround activities are to ensure assets integrity, while rejuvenation will extend the assets' useful life for another 20 years.

 

"Our current ancillary services consist of Gassing-Up-Cooling-Down (GUCD) for LNG ships post dry docking and LNG reloading. With the implementation of IMO 2020, we also look forward to being the key bunkering solutions partner in the near future," said Kamal Bahrin.

 

On the progress of gas market liberalisation in Malaysia, the MD/CEO said: "PGB is very supportive to the government initiatives on 3rd party access as it will help to ensure the security of supply to the nation and to drive energy and economic efficiency. These will encourage more investors to enter Malaysia to invest in gas-related industries, and PGB will benefit this by offering utilities solutions to the new industries."

 

Earlier last month, PGB witnessed the delivery of the inaugural third party LNG cargo under the Third Party Access system. The cargo was received by the company's LNG Regasification Terminal Sungai Udang and delivered to the customer via its Peninsular Gas Utilisation network.

 

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