KUALA LUMPUR: Petronas Gas Malaysia's (PetGas) net profit slipped 19.7 per cent year-on-year (YoY) to RM439.07 million in the second quarter (Q2) ended June 30, 2021, from RM547.10 million previously.
In an exchange filing today, the gas infrastructure and centralised utilities company said this was attributed to higher operating costs of gas processing, gas transportation, and regasification segments relating to depreciation, maintenance, and internal gas consumption.
Its Q2 revenue eased 1.4 per cent to RM1.38 billion from RM1.40 billion mainly due to lower revenue from the utility segment in line with lower product prices amid higher sales volumes.
For the first half period, PetGas's net profit increased 4.4 per cent to RM955.47 million from RM915.22 million, while revenue decreased 2.9 per cent to RM2.72 billion from RM2.80 billion.
PetGas's performance in 2021 is likely to remain resilient despite the ongoing pandemic as the company's business model and long-term contracts ensure steady revenue streams, particularly for gas processing, gas transportation and regasification business segments.
"Gas transportation and regasification business segments are anticipated to continue contributing positively to earnings under the RP1 tariffs.
"Gas processing segment is expected to remain stable on the back of its strong and sustainable income stream under the second term of the 20-year Gas Processing Agreement effective from 2019 until 2023."
Utilities segment contribution will be driven by customer demand, underpinned by economic conditions.
Meanwhile, PetGas gas declared a second interim single tier dividend of 16 sen per share, payable on September 20, 2021.