PETRONAS Gas stays bullish on gas and utilities demand

KUALA LUMPUR: Despite profits taking a dip in the second quarter of the year on higher fuel gas prices, Petronas Gas Bhd is optimistic on prospects given a bullish outlook on gas and utilities demand and steady revenue streams from its long-term contracts.

For the quarter ended June 30, 2022, the gas merchant said net profit was RM396.5mil, a 9.69% decline from the previous corresponding quarter, on revenue of RM1.5bil, 8.7% higher year-on-year.

Earnings per share was 20.04 sen compared with 22.19 sen.

“Gas and utilities demand is expected to improve as the country is transitioning into endemic phase of COVID-19.

“PGB Group expects assets utilisation to improve in line with the economic recovery.

“Group’s performance in 2022 is expected to remain resilient on the back of long-term contracts which ensures steady revenue streams, particularly for gas processing, gas transportation and regasification business segments,” it said in a filing with Bursa Malaysia.

However, it cautioned an anticipated rise in the Malaysia Reference Price, weakening trend of the ringgit against the US dollar and imposition of Prosperity Tax may further impact the group’s overall performance

For the second quarter, the group declared a second interim dividend of 16 sen going ex on Sept 12, 2022, and payable on Sept 23, 2022.

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