KUALA LUMPUR (May 26): Petronas Gas Bhd (KL:PETGAS) expects a total financial impact of RM170 million from the April 1 gas pipeline fire, with RM60 million affecting its financial year 2025 (FY2025) profits.
In a filing with Bursa Malaysia, the group said most of the costs will be recorded as capital expenditure and some will be covered by insurance.
Revenue loss from the disruption is estimated at RM20 million. The RM60 million profit impact is from both repair costs and revenue loss.
The estimates are based on the current condition of the site and damage but may change after official investigations, it said.
“In light of the recent incident, the group is further strengthening its risk management and mitigation frameworks to ensure continuity, resilience and sustainability across its operations,” PetGas said in the filing.
For the first quarter ended March 31, 2025, however, PetGas reported a 2.6% rise in net profit to RM468.8 million, thanks to higher profits from joint ventures due to higher repair and maintenance incurred.
Revenue fell slightly by 1.5% to RM1.6 billion, mainly due to lower tariffs charged to customers under the incentive-based regulation framework. The energy regulator requires companies to share savings from using less gas by lowering tariffs.
In PetGas' commentary on its results, the group said its gas pipeline network was nearly 100% reliable during the quarter.
However, segment revenue dropped 6.1%, or RM18.4 million, due to tariff cuts. As a result, segment profits fell 12.4%, or RM20.1 million, because of lower revenue and higher maintenance costs.
PetGas said it expects stable performance for 2025 despite the April 1 pipeline fire. All main business segments are expected to stay strong and support earnings. The group declared a first interim dividend of 16 sen per share for the quarter.
PetGas operates in four areas: gas processing — converts natural gas into sales gas and by-products; gas transportation — delivers gas and provides maintenance; regasification — converts liquefied natural gas back to gas; and related services and utilities — produces and supplies industrial utilities.
PetGas shares erased early losses on Monday to close 22 sen or 1.22% higher at RM18.22, giving it a market capitalisation of RM36.05 billion.