KUALA LUMPUR: Petronas Gas Bhd's (PetGas) net profit rose 10 per cent to RM468.46 million in the third quarter ended Sept 30, 2023 (3Q23) from RM425.82 million a year ago, on the back of lower tax expenses.
The group said the corresponding quarter tax expense was higher due to imposition of prosperity tax for year of assessment 2022, according to its filing to Bursa Malaysia today.
Revenue for the quarter inched down to RM1.55 billion from RM1.56 billion previously, due to lower revenue from regasification and gas transportation segments.
This was followed by lower approved regasification and transportation tariffs under second regulatory period (RP2), which was offset by higher revenue from utilities and gas processing segments on the back of higher product prices and higher performance incentive respectively.
Nevertheless, the group registered a higher earnings per share of 23.67 sen compared with 21.52 sen in 3Q22.
On a segmental basis, the group's gas processing segment results declined by 15 per cent or RM34.5 million due to higher operating expenses, mainly depreciation expenses, in line with higher capital expenditure.
Gas transportation segment results were lower by 15 per cent, or RM26.2 million, in line with lower revenue coupled with higher operating expenses due to higher level of maintenance activities performed during the quarter.
Regasification segment results were lower by 13.4 per cent, or RM24.9 million, due to lower RP2 tariff for Regasification Terminal Pengerang (RGTP), coupled with higher operating expenses, mainly depreciation expenses in tandem with higher capital expenditure.
The group's utilities segment results rose by 43.4 per cent or RM23.2 million in tandem with higher revenue and stronger margin following upward revision of imbalance cost pass-through (ICPT) surcharge and lower fuel gas costs in line with lower products volume.
PetGas has approved a third interim dividend of 18 sen per ordinary share amounting to RM356.2 million in respect of the financial year ending Dec 31, 2023.
For the nine-month period ended Sept 30, 2023 (9MFY23), PetGas' net profit rose 11.77 per cent to RM1.38 billion from RM1.23 billion, while revenue rose 7.41 per cent to RM4.86 billion from RM4.53 billion previously.
On prospects, PetGas said the group is expected to deliver strong financial performance for 2023, underpinned by the stable-earning contracts and excellent operational performance.
"Amidst higher operating costs environment post-pandemic, the group will continue to strive for operational excellence as well as to strike the right balance between growth investments, financial prudence and shareholders' distribution," it added.