Friday, August 27, 2010

PetGas 1Q net profit up 43% to 382.79m

KUALA LUMPUR: PETRONAS GAS BHD [] (PetGas) net profit for the first quarter (1Q) ended June 30, 2010 jumped 43% to RM382.79 million from RM268.94 million a year ago, on the back of an 11% increase in revenue to RM872.65 million.

The increase in revenue was attributed to higher gas processing and gas transportation revenue, while the jump in net profit was due mainly to higher revenue and lower cost of revenue.

Earnings per share was 19.35 sen, while net assets per share was RM4.24.

On its prospects going forward, PetGas said revenue from the new fee structure under the Gas Processing and Transmission Agreement (GPTA) was dependent on the volume of the gas processed at the Gas Processing Plants as well as volume of gas delivered directly into the PGU pipeline network.

It said the performance based structure would continue to provide PetGas with earnings potential which is dependent on the level of production of by-products and its price.

As internal gas consumption is provided by Petroliam Nasional Bhd, PetGas's exposure to fuel gas price fluctuation is eliminated, it said.

"The revised terms do not introduce new operating risks to PetGas; it better defines the obligations of the parties to the GPTA.

"Prospects for the utilities business will depend on the pace of economic recovery. Any variation in gas price will be reflected in the pricing to customers," it said.

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