KUALA LUMPUR (Feb 27): Petronas Gas Bhd’s (PetGas) net profit rose 7.04% in the fourth quarter ended Dec 31, 2023 (4QFY2023) on lower other expenses, financing costs and higher contribution from joint venture (JV) companies, offset by lower other income and higher tax expenses.

PetGas’ 4QFY2023 net profit came in at RM441.59 million versus RM412.55 million in 4QFY2022.

Earnings per share rose to 22.32 sen from 20.85 sen previously. The group declared an interim dividend of 22 sen per share, bringing its full-year payout to 72 sen per share, unchanged from FY2022.

The improved bottom line was despite a 3.06% dip in revenue to RM1.58 billion from RM1.63 billion previously, weighed down by contribution declines from its gas transportation, regasification and utilities segments.

In the quarter, other expenses fell 86.71% year-on-year (y-o-y) to RM2.99 million from RM22.52 million, while financing costs fell 50.61% to RM23.43 million from RM47.43 million.

Its share of profit after tax from JV and associates swelled to RM105.32 million from RM18.56 million.

These improvements were offset by other income declining 56.2% to RM61.85 million from RM141.23 million, and tax expenses rising 118.58% to RM142.86 million from RM65.36 million.

For the financial year ended Dec 31, 2023 (FY2023), PetGas’ net profit increased 10.58% to RM1.82 billion from RM1.65 billion a year ago due, likewise, to lower other expenses, financing costs and higher contributions from JV companies.

Full-year revenue rose 4.63% y-o-y to RM6.45 billion from RM6.16 billion, mainly thanks to higher contributions from its utilities segment on higher product prices in tandem with elevated fuel gas prices.

Looking to FY2024, PetGas anticipates a “healthy” performance as it remains attentive to challenges ahead while maintaining focus on its operational excellence.

“As the group pursues its growth strategy, it will continue to strike the right balance between growth investments, financial prudence and shareholders’ distributions,” the group added.

PetGas managing director and chief executive officer Abdul Aziz Othman said the group is committed to enhancing the reliability, safety and efficiency of its plant operations to further fortify its resilience and ensure sustainable revenue with healthy margins.

“We are also exploring opportunities for growth within the National Energy Transition Roadmap (NETR). The group has also initiated our efforts into pursuing a greener portfolio to support our target to achieve net zero carbon emissions by 2050,” he added.

Shares in PetGas ended 12 sen or 0.67% at RM18.06, valuing the group at RM35.74 billion.