KUALA LUMPUR: Petronas Gas Bhd (PGB) will pay RM1.31 billion worth of dividends to its shareholders after announcing "solid" second quarter results.
The dividends comprise a second interim dividend of 16 sen per share and a special interim dividend of 50 sen per share for the second quarter (Q2) ended June 30, 2020.
In an exchange filing to Bursa Malaysia yesterday, the gas infrastructure and centralised utilities company said the dividends would be paid on October 1.
Petronas Gad said it had recorded a solid Q2 performance on the back of high efficiencies across its four business segments, which resulted in higher performance incentives and lower costs during the period.
Its Q2 net profit rose 8.8 per cent to RM547.10 million from 502.90 million previously.
This was attributed to lower operating costs across the group's business segments and unrealised foreign exchange gain as well as higher share of profit from a joint venture.
Its Q2 revenue increased 1.4 per cent to RM1.40 billion from RM1.38 billion a year ago, backed by long-term contractual agreements with existing customers.
For the first half, Petronas Gas' net profit eased 9.8 per cent to RM915.22 million from RM1.02 billion, while revenue increased 1.8 per cent to RM2.80 billion from RM2.75 billion.
Managing director and chief executive officer Kamal Bahrin Ahmad said its business had proven resilient amid the current market uncertainties.
"As the Incentive-Based Regulation becomes part of the new norm, we expect steady earnings from our regulated businesses for the next three years," he said in a statement yesterday.
The company recently disclosed on its website the availability of partial capacity transfer from incumbent shipper to interested shippers and customers at its Regasification Terminal Sungai Udang (RGTSU) beginning 2021 until end 2022.
It added that the offer for partial capacity transfer was part of Petronas' commitment to support third-party access system, while the incoming third-party liquefied natural gas (LNG) cargoes and the consequent traffic increase at Peninsular Gas Utilisation (PGU) pipeline were envisioned to spur the domestic gas demand from the industries and benefit PGB.
Petronas Gas said it would continue its capital commitments on approved projects on top of the ancillary services of LNG bunkering and LNG truck loading at the regasification terminals, as well as the new nitrogen unit planned in 2021, for both existing and new customer.
"We are focused on ensuring activities which were affected by the MCO resume pace by the end of the year.
"To-date, the group has spent RM434 million on capital expenditure with the total expected to be around RM1.0 billion by end 2020," Kamal Bahrin said.