Highlight PetGas 4Q profit jumps 33% y-o-y to RM394m

by **Cals** Tue 11 Feb 2014, 01:48

Highlight PetGas 4Q profit jumps 33% y-o-y to RM394m

Business & Markets 2014

Written by Jeffrey Tan of theedgemalaysia.com

Monday, 10 February 2014 19:06

KUALA LUMPUR (Feb 10): Petronas Gas Bhd (PetGas)’s net profit jumped 33% year-on-year (y-o-y) to RM394 million in the fourth quarter ended Dec 31, 2013, from RM295 million in the fourth quarter of 2012.

Revenue also rose 13% y-o-y to RM1.028 billion, from RM909 million.

The company proposed a final dividend of 40 sen per ordinary share under a single tier system for the financial year ended Dec 31, 2013. This amounts to RM791 million.

In a statement to Bursa Malaysia, PetGas said the profit increase was in line with the increase in revenue. In addition, there was higher other income and share of profit from associate and joint ventures.

The firm also said its larger profit was due to lower tax expense resulting from a change in deferred tax estimates. This came on the back of a lower future statutory tax rate.

PetGas said its revenue increase was largely due to regasification revenue. This followed commencement of the LNG Regasification Terminal operations in the second quarter last year and higher gas transportation revenue.

The firm, however, said the increase was partially offset by lower utilities revenue on the back of lower offtake by customers.

For the full-year period, net profit earned was RM2.1 billion, up from RM1.4 billion in the previous corresponding period, while revenue raked in was RM3.9 billion from RM3.6 billion a year ago.

PetGas said the cumulative profit was mainly due to contribution from its regasification segment from the second quarter last year.

But it was partially offset by gain from partial disposal of shareholding in Gas Malaysia Bhd in the previous year.

Furthermore the firm said the higher profit was due to recognition of deferred tax assets arising from investment tax allowance granted for the LNG Regasification Terminal amounting to RM626.4 million.

PetGas said the improved cumulative revenue was due to similar reasons given for the fourth quarter.

“Looking ahead, the group’s earnings are expected to remain stable as the structure of the new gas processing and transmission agreements are expected to be not significantly different from the existing structure,” said PetGas.

The new agreements will replace the existing Gas Processing and Transmission Agreement (GPTA) effective April 1, 2014, it added.