PETRONAS Gas Berhad (6033) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was RM1,594.5 million, down 1.5% year-over-year due to lower gas transportation and regasification revenue from tariff adjustments.

• Profit after tax increased 4.2% to RM492.1 million, driven by higher joint venture contributions despite lower revenue.

• The Putra Heights pipeline fire incident is estimated to have a total financial impact of RM170 million, with RM60 million affecting 2025 profit and most costs capitalized; insurance recovery is pending.

• Board approved a first interim dividend of 16 sen per share, totaling RM316.6 million.

• Maintained focus on safe operations, project delivery, and exploring growth opportunities for long-term value.

Financial highlights

• Gross profit declined 4.2% year-over-year to RM575.7 million, mainly from tighter margins in gas transportation and regasification.

• EBITDA was stable at RM852.1 million, up 0.3% year-over-year; EPS increased by 2.6% to 23.69 sen.

• Cash and cash equivalents at RM2,596 million, supporting operations and growth initiatives.

• Liabilities decreased by 2% due to higher settlement of payables.

• Net cash from operating activities was RM681.8 million; capex commitments at RM5.8 billion as of 31 March 2025.

Outlook and guidance

• FY2025 performance expected to remain resilient despite the pipeline fire incident, with all core business segments contributing positively.

• Focus on safety, operational excellence, and project delivery, with enhanced protocols post-incident.

• Monitoring macroeconomic and geopolitical risks, including US trade policy, supply chain continuity, and tariff adjustments.

• Progressing on power plant projects in Sabah and Labuan, with commercial operation dates targeted for 2026 and 2028.

• Comprehensive assessment of Putra Heights incident implications for Q2 and beyond.