KUALA LUMPUR (Aug 26): PETRONAS Gas Bhd (KL:PETGAS) maintained its second interim dividend at 16 sen per share after its second-quarter net profit came in largely flat as higher share of profit from joint ventures, lower costs and a lower profit allocation to non-controlling interests offset a decline in revenue.

The group posted a net profit of RM453.33 million for the three months ended June 30, 2026 (2QFY2026), as opposed to RM450.19 million for 2QFY2025, its bourse filing showed.

Revenue dropped 5.6% to RM1.5 billion from RM1.59 billion, mainly due to a sharp 28.6% drop in the utilities segment, where sales volume fell following planned regulatory plant turnaround activities, which was partially cushioned by a 12.7% increase in revenue from gas transportation and higher regasification contribution from the new Pengerang LNG storage services.

The 16 sen dividend, amounting to RM316.6 million, will be paid on Sept 29. The latest dividend lifts the year-to-date payout per share to 32 sen, the same as the corresponding FY2025 period.

For the first six months ended June 30 (1HFY2026), PETRONAS Gas' net profit slipped 2.9% to RM892.02 million from RM918.98 million, as revenue dipped 3.1% to RM3.09 billion from RM3.18 billion.

The weaker first-half performance was again mainly due to the weaker utilities segment, coupled with increased depreciation costs across all segments upon completion of capital projects. These impacts were cushioned by lower fuel gas costs, in tandem with lower volume and fuel gas price.

Managing director and CEO Abdul Aziz Othman said the group's "healthy performance reflects the strength of our regulated and long-term contracted business".

And despite geopolitical tensions, energy market disruptions and an increasingly complex operating environment, Malaysia continued to benefit from a stable and reliable gas supply system, he noted.

"This was made possible through close coordination across the PETRONAS group supply chain to maintain supply availability, operational reliability and infrastructure readiness to meet the nation’s energy needs," he said.

PETRONAS Gas expects to continue delivering "healthy performance" for the remainder of 2026, supported by stable earnings from its regulated and long-term contracted businesses.

Shares of PETRONAS Gas closed two sen or 0.1% lower at RM17.58 on Wednesday, valuing the group at RM34.79 billion. The counter has fallen more than 3% year to date.