KUALA LUMPUR, June 19 – PETRONAS Gas Berhad (PGB) has announced impressive financial results for the first quarter of 2023, recording a Profit After Tax (PAT) of RM448 million. This represents a 2% increase compared to the same quarter in the previous year, demonstrating PGB’s resilience in navigating a challenging market environment marked by higher costs. Despite facing cost pressures, PGB’s utilities segment experienced higher revenue due to the peak Malaysia Reference Price (MRP) of RM58/MMBtu in Q1. However, the increase in revenue was partially offset by higher gas costs that were not fully passed on to customers.
Additionally, PGB’s regulated business recorded lower revenue during the period due to the second phase of the Incentive-Based Regulation (IBR) framework, resulting in lower tariffs charged by the company. The Gas Transportation and Regasification segments were also impacted by higher gas costs. PGB achieved a Q1 2023 Group Revenue of RM1.67 billion, a notable 15% increase compared to the same period in 2022. This growth was primarily driven by higher revenue from the Utilities sector, which aligned with increased product prices. However, the gross profit decreased by 11% to RM547 million, primarily due to higher operating expenses as mentioned earlier.
Nevertheless, PAT improved by 2% or RM10.7 million, supported by increased interest income from fund investments, a greater proportion of profit from joint venture companies, and a decrease in tax expenses as the Prosperity Tax imposed in 2022 is no longer applicable this year. Abdul Aziz Othman, the Managing Director and Chief Executive Officer of PGB, expressed confidence in the company’s performance, stating, “Despite the MRP peaking in Q1 2023, we anticipate a tapering of MRP in the following quarters while still maintaining an elevated level.
PGB’s performance is expected to remain robust and healthy, supported by our unwavering focus on operational excellence and stable-earning contracts.” Looking ahead, Aziz emphasized PGB’s commitment to pursuing opportunities that leverage its expertise and capabilities. He also highlighted the company’s intention to play a crucial role in PETRONAS’ carbon capture and storage value chain, aligning with the broader sustainability goals. Despite the challenging market conditions, PGB’s strong financial results and resilient performance underscore its ability to navigate uncertainties and continue delivering value to its stakeholders.
