KUALA LUMPUR: Petronas Gas Bhd (PetGas) registered a 10.6 per cent increase in net profit to RM1.8 billion for the year ended Dec 31c2023 (FY23) from RM1.6 billion in the previous year.
The company's total revenue grew 4.6 per cent to RM6.45 billion from RM6.2 billion previously.
PetGas attributed this growth primarily to revenue from the utilities segment, driven by increased product prices in line with higher fuel gas prices.
"Electricity tariff for the year was also higher in line with upward revision of imbalance cost pass-through (ICPT) surcharge," it added.
For the fourth quarter (4Q), PetGas posted a net profit of RM441.6 million, reflecting a 7.0 per cent rise from RM412.6 million in the same quarter of the prior year.
However, its revenue dropped 3.1 per cent from RM1.63 billion to RM1.60 billion, primarily due to reduced revenue from the utilities and regasification segments.
"Lower utilities revenue was mainly due to lower products' price and customers' offtake while regasification revenue was lower in line with lower regulatory period (RP2) tariff," it added.
In its quarterly report, PetGas stated that contributions from the utilities, regasification and gas transportation segments are expected to be comparable to those of 2023.
"The government has announced the continuation of the ICPT surcharge for the first half of 2024 in relation to electricity tariff that will partly mitigate the adverse impact of the high fuel gas cost on utilities segment's earnings," PetGas added.
PetGas managing director and chief executive officer Abdul Aziz Othman emphasised the company's dedication to improving the reliability, safety, and efficiency of its plant operations.
"We are also exploring opportunities for growth within the National Energy Transition Roadmap, and have initiated our efforts into pursuing a greener portfolio to support our target to achieve net zero carbon emission by 2050," Abdul Aziz added.
PetGas declares an interim dividend of 22 sen per ordinary share for 4Q of FY23, matching the dividend distribution of the previous fiscal year, thus totaling a dividend distribution of 72 sen for FY23.