PETALING JAYA: Petronas Gas Bhd’s (PetGas) earnings are expected to remain resilient this year, underpinned by the group’s business model and long-term contracts that will ensure steady revenue streams.

       MIDF Research in a report said PetGas’ gas transportation and regasification business segments are anticipated to continue contributing positively to the group’s earnings.

       However, the research house said PetGas’ utilities segment may be affected by customer demand and fuel gas prices.

       PetGas’ net profit for its first quarter ended March 31, 2022 dropped to RM410.58mil from RM516.40mil in the previous corresponding period, while revenue rose to RM1.46bil from RM1.34bil a year earlier.

       MIDF Research noted that the lower profit was due to lower utilities margins and higher fuel gas prices and operating costs for gas processing transportation and regasification, among others.

       Looking ahead, the research house said it was revising its 2022 and 2023 earnings forecast for PetGas.

       “However, we maintain our target price for PetGas at RM17.90,” MIDF Research said.