PETALING JAYA: The one-off Cukai Makmur or prosperity tax dragged down Petronas Gas Bhd’s (PetGas) net profit in the fourth quarter ended Dec 31, 2021, which fell by over 10% year-on-year (y-o-y).

       The natural gas distribution company, whose net profit fell to RM452.63mil from RM503.35mil in the previous corresponding quarter, said it had incurred a higher deferred tax expense to account for the Cukai Makmur in 2022.

       In the latest fourth-quarter period, PetGas’ bottom line was also impacted by higher operating costs from the gas transportation and utilities segments and unfavourable foreign-exchange rates.

       Its revenue, however, rose 7.79% y-o-y to RM1.5bil from RM1.39bil a year earlier, mainly contributed by higher contribution from the utilities segment.

       This was due to the higher product prices in line with the higher fuel gas price coupled with higher electricity sales volumes.

       This was following the commencement of electricity supply under the New Electricity Despatch Arrangement from August 2021 onwards.

       For the latest fourth quarter, the group’s earnings per share was 22.87 sen.

       A dividend of 32 sen per share was announced for the quarter.

       Cumulatively, for the financial year ended Dec 31, 2021, PetGas’ net profit slid 1.03% y-o-y to RM1.99bil from RM2.01bil a year earlier.

       Meanwhile, the group’s revenue for the 12-month period increased marginally by 1.01% y-o-y to RM5.65bil as compared to RM5.59bil in the previous corresponding financial year.

       The stronger topline was mainly contributed by higher revenue from the utilities segment, driven by higher contribution from steam sales to new customers, as well as from the regasification segment as a result of new revenue stream from liquefied natural gas ancillary services.

       Looking ahead, PetGas said that its performance in 2022 was expected to remain resilient despite the ongoing pandemic.

       This was thanks to the group’s business model and long-term contracts that ensured steady revenue streams, particularly for the gas processing, gas transportation and regasification business segments.

       “The group’s gas transportation and regasification business segments are anticipated to continue contributing positively to the group’s earnings under Regulatory Period 1 (RP1) tariffs which are effective until Dec 31, 2022.

       “The group’s 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.

       “The group’s utilities segment contribution will be driven by customer demand, underpinned by economic conditions,” it said in a stock exchange filing yesterday.

       PetGas also added that it was in the midst of finalising the renewal of several long-term contracts for the utilities segment, which would be concluded this year.