KUALA LUMPUR (May 19): PETRONAS Gas Bhd (KL:PETGAS) posted a 6.4% decline in its first-quarter net profit compared to the same period last year, weighed down by lower revenue from its utilities segment, along with higher operating costs and increased depreciation from its expanded asset base.

Net profit for the quarter ended March 31, 2026 (1QFY2026) fell to RM438.69 million from RM468.8 million a year earlier, while revenue came in at RM1.59 billion, slightly below by 0.6% compared to the same period last year, a bourse filing showed.

The group declared a single-tier interim dividend of 16 sen per share, payable on June 23.

PETRONAS Gas said it faced increased depreciation across all of its business segments, on top of higher repair and maintenance costs.

Revenue from its utilities segment fell by 13.1% or RM67.6 million as the group faced weaker product prices following reduced fuel gas costs and revised electricity tariffs that were implemented on July 1, 2025.

PETRONAS Gas said this was partially offset by contributions from the gas transportation segment and regasification segment following the commencement of liquefied natural gas (LNG) storage services in Pengerang, Johor, in August 2025.

The group said its outlook for the year is still “resilient”, supported by stable earnings contributions from regulated gas transportation, regasification and gas processing segments. However, it flagged continued pressure on its utilities segment margins due to fuel gas price volatility amid global geopolitical uncertainty.

It added that it will focus on operational resilience, cost optimisation and long-term growth initiatives, while monitoring inflationary and supply chain risks.

Shares of PETRONAS Gas were down by 10 sen or 0.6% to RM17.74 at the time of writing on Tuesday, valuing the group at RM35.1 billion.