KUALA LUMPUR (Oct 1): Petronas Gas Bhd (KL:PETGAS) will reorganise its structure to separate regulated and non-regulated businesses, aiming to improve transparency, sharpen focus, and allow more flexible capital management.
The group said in a stock exchange filing on Wednesday that the exercise, approved by its board on July 23, 2025, will be carried out through a members’ scheme of arrangement under the Companies Act 2016, with final clearance obtained from the Ministry of Finance on Sept 24, 2025 — received by the company on Sept 30 — for tax exemptions related to the restructuring.
Under the plan, Petronas Gas will transfer its gas transportation, gas processing and utilities businesses into wholly owned subsidiaries via conditional business transfer agreements.
Specifically, the gas transportation arm will be moved to PG TransCo Sdn Bhd, gas processing to PG Gas Processing Sdn Bhd, and the utilities business to PG Utilities East Sdn Bhd — a unit of PG Energia Sdn Bhd, which will serve as the holding company for the group’s utilities and energy ventures.
The company said the reorganisation will draw a clearer distinction between its regulated businesses, such as gas processing and transportation, and non-regulated activities, primarily utilities and energy.
“The proposed structure of the group after the proposed internal reorganisation will support the company’s medium- to long term strategic agenda, ensuring the company remains competitive, efficient and relevant,” the filing read.
Petronas Gas added that PG Energia, as the investment holding company for utilities and energy, will consolidate related businesses and projects, enabling it to be more cost-competitive and responsive to market demands.
Petronas Gas said the proposed reorganisation, which is expected to be completed in the third quarter of 2026, will not affect the group’s share capital, shareholder structure, or earnings per share in the near term.
The restructuring is subject to shareholder approval at a forthcoming court-convened meeting, as well as approval from the High Court and other relevant authorities. Petronas Gas needs shareholders holding at least 75% of its shares to give it the go-ahead.
For the first six months of FY2025, Petronas Gas' net profit stood at RM918.98 million, marginally lower than RM925.64 million in the same period last year (6MFY2024). Revenue slipped 2.5% year-on-year to RM3.18 billion.
As at 3.50pm on Wednesday, its shares were unchanged at RM18.50, with a market capitalisation of RM36.61 billion.