Petronas Gas reports 2% dip in profit in Jul-Sep

Petronas Gas, a unit of Malaysian state-run Petronas, on November 22 reported a 1.7% year/year drop in net profit for the July-September quarter owing to unfavourable foreign exchange movement.

Its profit during the quarter came in at 580.84mn ringgit ($138mn) compared with 591.01mn ringgit in the same period last year. The company recorded an unrealised forex loss of 10.4mn ringgit during the quarter.

The company’s total revenue increased 1.4% yr/yr to 1.43bn ringgit because of higher revenue from the utilities as well as regasification segments and new revenue stream from LNG ancillary services, it said.

Looking ahead, the company said its performance in 2021 was expected to remain resilient despite the ongoing pandemic as its business model and long-term contracts ensured steady revenue streams, particularly for gas processing, gas transportation and regasification business segments.

Petronas Gas said the gas transportation and regasification business segments were anticipated to continue contributing positively to the group’s earnings. Its 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.