PETRONAS Gas Bhd (PetGas) posted a net profit of RM1.82 billion on the back of RM6.45 billion for the year ended Dec 31, 2023 (FY23) despite facing a "challenging business environment".
Its net profit for FY23 was up 11% from the year before on the back of higher share of profit from joint-venture (JV) companies, lower financing costs and lower impact from unfavourable foreign-exchange movement following early settlement of US dollar lease liability for floating storage at liquefied natural gas (LNG) regasification terminal in Sungai Udang, Melaka.
The revenue was up 5% from FY22 due to higher product prices in tandem with elevated fuel gas price.
Profit for the year increased by 8.1% or RM142.6 million in tandem with higher pretax profit as well as lower tax expense. The corresponding year tax expense was higher as a result of imposition of Prosperity Tax for year of assessment 2022, it said in an exchange filing.
In a separate statement, PetGas MD/CEO Abdul Aziz Othman said that FY23 was a "challenging business environment" and that the company was exploring opportunities for growth with the National Energy Transition Roadmap (NETR).
The company said its gas processing plants had maintained "close to 100% reliability", contributing a segment revenue of RM31.4 million, up 1.8% from the year before, due to higher performance incentive.
The group's total assets were at RM19.3 billion, lower by 1.9, due to lower cash balance as a result of early settlement of lease liability for floating storage at LNG regasification terminal in Sungai Udang, partially offset by higher property, plant and equipment, and investments in JV balances in tandem with higher capital expenditure and share of profit respectively.
The company has declared a fourth interim dividend of 22 sen per ordinary share amounting to RM435.3 million for the fourth quarter of 2023 (4Q23), bringing its total FY23 dividend to 72 sen.
PetGas is 51%-owned by state energy corporation Petroliam Nasional Bhd (Petronas).
The counter has six 'Buy' and nine 'Hold' calls, according to analysts tracked by Bloomberg, with a 52-week consensus target price of RM8.40. It ended today's trading at RM18.06.