KUALA LUMPUR: Petronas Gas Bhd (PGB) is spending more than RM500 million in capital expenditure (capex) in the current financial year ending Dec 31, 2017.
"The majority of the capex will be allocated for PGB's ongoing projects in Pengerang Johor, and also (for) maintenance and upgrading works of our existing facilities," PGB chairman Datuk Mohd Anuar Taib told reporters after the company’s annual general meeting here, today.
PGB managing director/chief executive officer Yusa' Hassan said PGB's projects, which support the development of the Pengerang Integrated Complex (PIC) in Johor, are on track.
The projects are the Liquefied Natural Gas (LNG) Regasification Terminal in Pengerang (RGTP), the Pengerang Gas Pipeline Project (PGPP) and the Air Separation Unit (ASU), which are in various stages of completion.
"Upon commissioning, these projects will bring additional revenue to PGB and integrate us into the PIC, which is set to become a major regional downstream oil and gas hub," Yusa’ added.
Mohd Anuar said the company’s resiliency in the financial year 2016 enabled it to sustain a market capitalisation of RM42 billion.
With its healthy profit, he said PGB was able to pay the highest-ever dividend of 62 sen per share, which represents a payout ratio of 71 per cent, at par with the industry average.
"The group will look continuously for growth opportunities, leveraging on our core competencies in the gas infrastructure and utilities business.
"Towards this end, we (are closely) collaborating with the Malaysian Industrial Development Authority, the East Coast Economic Region, the Economic Planning Unit and the Energy Commission to identify potential ventures that would enable us to expand our existing business, with the ultimate objective of ensuring higher returns to our shareholders," Mohd Anuar added.