Petronas Gas posts higher 1Q profit, declares 16 sen dividend

New Straits Times

26-05-2025

KUALA LUMPUR: Petronas Gas Bhd's net profit for the first quarter of 2025 (1Q 2025) rose to RM468.80 million from RM456.65 million a year earlier.
Revenue declined to RM1.59 billion from RM1.62 billion previously, mainly attributable to lower revenue from gas transportation and regasification segments following downward tariff adjustment arising from the sharing factor for the prior year's lower internal gas consumption.
In a Bursa Malaysia filing today, the group said its overall performance for the financial year 2025 is expected to remain resilient and stable, notwithstanding the operational disruption caused by the pipeline fire incident in Putra Heights in April 2025.
"All core business segments are anticipated to maintain their strength and continue contributing positively to the group's earnings," it said.
Petronas Gas said that based on current site conditions and the extent of asset damage -- pending the outcome of official investigations -- the total financial impact from repair and restoration works is estimated at approximately RM170 million.
"A substantial portion of this expenditure will be capitalised as part of the company's capital expenditure, with partial cost recovery expected from the insurance claim.
"Revenue loss attributable to the temporary service interruption is projected to be minimal at approximately RM20 million, driven by close collaboration with regulatory authorities, gas shippers, and distributors that enabled the swift restoration of pipeline services and stabilisation of supply," it said.
It said that the total estimated profit impact from both asset restoration and revenue loss is projected to be around RM60 million for the year.
In response to the incident, Petronas Gas said that the group is intensifying its focus on robust risk management, operational resilience, and proactive mitigation measures.
"We remain firmly committed to maintaining the highest standards of safety and operational excellence, while continuing to pursue disciplined cost management and long-term strategic growth to ensure business continuity and sustainability," it added.
On May 26, 2025, the directors of the company have approved a first interim dividend of 16 sen per ordinary share, amounting to RM316.6 million in respect of the financial year ending Dec 31, 2025, and payable on June 24, 2025.