KUALA LUMPUR: Petronas Gas Bhd (PetGas), which saw its net profit tumbled 20.5% to RM410.58mil in the first quarter ended March 31, has declared a first interim dividend of 16 sen per ordinary share.

       The dividend amounted to RM316.6mil is payable on June 16 and the entitlement date on June 7.

       Revenue, however, rose 8.8% to RM1.45bil in the first quarter against RM1.34mil last year mainly driven by higher revenue from the utilities segment.

       PetGas said its utilities revenue improved as a result of higher product prices and higher electricity sales volumes recorded.

       It said its pre-tax profit (PBT) declined by 12.3% or RM82.2mil in tandem with lower gross profit, partially negated by the impact of favourable foreign exchange movement.

       Profit for the quarter decreased by 19.0% or RM102.4mil with lower PBT as well as a higher effective tax rate with the imposition of Prosperity Tax for the year of assessment 2022.

       The group’s total assets at RM19bil was slightly lower by 1.2% or RM221.7mil as a result of lower property, plant and equipment balances due to depreciation.

       Its total equity attributable to shareholders of the company decreased by 1.7% to RM12.9bil in line with dividends paid to shareholders of the company, offset by profit for the period.

       Total liabilities were marginally lower by 0.5% as higher settlements of trade and other payables were negated by a drawdown of Islamic financing facility and higher tax payable.

       Its net cash generated from operating activities was lower by 10.4% or RM75.7mil in line with lower profit before taxation.

       Net cash used in investing activities decreased by 22.6% or RM40mil due to lower spending on capital expenditure.

       Commenting on its prospects, PetGas said its performance in 2022 is expected to remain resilient despite the ongoing pandemic as the group’s business model and long-term contracts ensure steady revenue streams, particularly for 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 is effective until Dec 31, 2022,” it said.

       PetGas said 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.

       “The group’s utilities segment contribution may be affected by customer demand and fuel gas price, which is a non-pass through cost for electricity sales,” it said, adding that it is in the midst of finalising the renewal of several long-term contracts for the utilities segment to be concluded this year.