KUALA LUMPUR: Petronas Gas Bhd’s reported a slight increase of five per cent in its profit to RM38.4 million for the first half ended June 30, 2017.
In a filing to Bursa Malaysia, this increase in profit was attributed to higher contributions from Gas Transportation and Regasification segments as well as higher other income and share of profit from joint ventures.
These however, were partially offset by lower contribution from Gas Processing segment due to higher operating costs.
Revenue for the first half also increased by four per cent to RM2.3 billion, driven by higher utilities volume and prices.
For the second quarter (Q2) ended June 30, 2017, the group reported a profit of RM22.5 million, which was mainly contributed by higher gross profit and margin across all segments, on the back of RM1.1 billion revenue.
For Q217, contribution from Gas Processing segment was at RM161.1 million, which was two per cent higher, in line with lower repair and maintenance activities principally due to progressive completion of the group’s transformation program to improve its asset integrity in 2016 despite comparable revenue against corresponding quarter.
Gas Transportation segment registered a higher profit of RM249.9 million as compared to the corresponding quarter, an increase of RM22.9 million or 10 per cent attributed to higher revenue coupled with lower repair and maintenance cost incurred during the quarter.
Regasification’s profit however declined by eight per cent or RM37.3 million as compared to the preceding quarter primarily due to lower share of profit from joint ventures coupled with higher operating costs across all segments.
The Group performance is expected to remain stable amidst the challenging economic environment on the back of its strong and sustainable income streams from existing Gas Processing Agreement, Gas Transportation Agreements and Regasification Service Agreement signed with Petroliam Nasional Bhd.