KUALA LUMPUR (Nov 26): PETRONAS Gas Bhd (KL:PETGAS) reported on Wednesday a 10% decline in its third-quarter net profit due to softer margins across key segments, amid lower product prices and downward tariff adjustments. The group reiterated that earnings pressure is expected to persist.

Net profit for the three months ended Sept 30, 2025 (3QFY2025) fell to RM444.23 million from RM493.67 million a year earlier, PetGas' filing with Bursa Malaysia showed. Quarterly revenue slipped 2.27% to RM1.62 billion from RM1.66 billion.

The weaker performance was mainly attributed to lower margins following reduced revenue from the utilities segment — mainly due to lower product prices — and lower gas transportation revenue due to a tariff adjustment linked to the sharing factor for the prior year’s lower incentive-based gas capacity (IGC).

The group said the earnings softness was further compounded by higher depreciation expenses and less favourable foreign exchange movements. These were partially cushioned by a one-off settlement income from a customer during the quarter.

PetGas declared a third interim dividend of 18 sen per share, amounting to RM356.2 million, payable on Dec 23. The counter will trade ex-dividend on Dec 10. As of end-September, the utility giant has cash and cash equivalent of RM2.40 billion against borrowings of RM2.08 billion.

On its prospects, PetGas — which derives the bulk of its income from processing natural gas — said it continues to maintain operational resilience through disciplined operations, proactive asset management and ongoing cost optimisation measures, despite operational challenges this year.

The group expects maintenance activities to intensify in 4QFY2025 as part of its reliability and safety assurance programmes. It also noted that rebate adjustments under the government’s new electricity tariff structure will continue to exert pressure on the utilities segment’s revenue.

“PetGas remains focused on prudent cost management, operational excellence, and long-term sustainability — ensuring safe, reliable and efficient operations that continue to create enduring value for all stakeholders,” the group said.

For the first nine months of FY2025, PetGas' net profit came in at RM1.36 billion, down nearly 4% from RM1.42 billion a year earlier. Revenue slipped 2.43% to RM4.80 billion from RM4.92 billion.

Shares of PetGas closed one sen or 0.55% higher at RM18.28 on Wednesday, valuing the group at RM36.17 billion. Year to date, the counter is up 1.90%.