KUALA LUMPUR (Feb 24): PETRONAS Gas Bhd (KL:PETGAS) reported a 12.7% decline in its fourth-quarter net profit compared with the year-ago quarter, hit by lower earnings in its gas transportation segment and the absence of a major one-off tax benefit.

Net profit for the quarter ended Dec 31, 2025 (4QFY2025) dropped to RM363.91 million from RM417.03 million a year earlier, while revenue eased 2.8% to RM1.57 billion from RM1.62 billion, primarily due to softer product prices after tariff revisions, according to PetGas' bourse filing.

The group attributed the weaker performance to reduced revenue from tariff adjustments, higher operating costs from stepped-up maintenance activities, and increased depreciation tied to capital expenditure.

Tax expenses also rose sharply to RM132.52 million from RM54.33 million, as the group's effective tax rate normalised to 25%. In the previous year, the rate was just 11.5% due to a one-off investment tax allowance.

The group declared a dividend of 22 sen per share, unchanged from the prior year, bringing total dividends for FY2025 to 72 sen per share. Shareholders on the register as of March 10 will be entitled to the payout.

For the full year, PetGas' net profit fell 5.9% to RM1.73 billion from RM1.84 billion, as revenue slipped 2.5% to RM6.37 billion from RM6.54 billion.

For 2026, PetGas is optimistic about maintaining its resilient performance. It expects earnings to be anchored by the newly approved Regulatory Period 3 tariffs for its gas transportation and regasification segments.

Shares in PetGas closed unchanged at RM18.60 on Tuesday, giving the group a market capitalisation of RM36.8 billion. The stock has gained 6.7% over the past year.