PetGas 3Q net profit up 50.4% to RM400m on higher gas processing revenue
Written by Surin Murugiah of theedgemalaysia.com
Tuesday, 22 February 2011 19:30
KUALA LUMPUR: PETRONAS GAS BHD [] (PetGas) net profit increased 50.4% to RM400.74 million for the third quarter ended Dec 31, 2010 from RM266.47 million a year ago driven by higher gas processing and gas transportation revenue.
It said on Tuesday, Feb 22 that revenue rose 10% to RM892.69 million from RM810.89 million. Earnings per share were 20.25 sen while net assets per share was RM4.14.
For the nine months ended Dec 31, PetGas’s net profit rose 58.2% to RM1.17 billion from RM739.5 million a year ago while its revenue increased by 8.67% to RM2.63 billion from RM2.42 billion.
Commenting on its prospects, PetGas said revenue from the new fee structure under the gas processing and transmission agreement (GPTA) hinged on the volume of the gas processed at the gas processing plants as well as volume of gas delivered directly into the pipeline network.
“The performance based structure will continue to provide PetGas with additional earnings potential which is dependent on the level of production of by-products and their prices,” it said.
As internal gas consumption is provided by Petronas, PetGas’s exposure to fuel gas price fluctuation is eliminated, it said.
“The revised terms under the GPTA do not introduce new operating risks to PGB; it better defines the obligations of the parties to the GPTA.
“Prospects for the utilities business will depend on the pace of economic recovery. Any variation in gas price will be reflected in the pricing to customers,” it said.
Written by Surin Murugiah of theedgemalaysia.com
Tuesday, 22 February 2011 19:30
KUALA LUMPUR: PETRONAS GAS BHD [] (PetGas) net profit increased 50.4% to RM400.74 million for the third quarter ended Dec 31, 2010 from RM266.47 million a year ago driven by higher gas processing and gas transportation revenue.
It said on Tuesday, Feb 22 that revenue rose 10% to RM892.69 million from RM810.89 million. Earnings per share were 20.25 sen while net assets per share was RM4.14.
For the nine months ended Dec 31, PetGas’s net profit rose 58.2% to RM1.17 billion from RM739.5 million a year ago while its revenue increased by 8.67% to RM2.63 billion from RM2.42 billion.
Commenting on its prospects, PetGas said revenue from the new fee structure under the gas processing and transmission agreement (GPTA) hinged on the volume of the gas processed at the gas processing plants as well as volume of gas delivered directly into the pipeline network.
“The performance based structure will continue to provide PetGas with additional earnings potential which is dependent on the level of production of by-products and their prices,” it said.
As internal gas consumption is provided by Petronas, PetGas’s exposure to fuel gas price fluctuation is eliminated, it said.
“The revised terms under the GPTA do not introduce new operating risks to PGB; it better defines the obligations of the parties to the GPTA.
“Prospects for the utilities business will depend on the pace of economic recovery. Any variation in gas price will be reflected in the pricing to customers,” it said.
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