PETRONAS Gas Berhad (6033) Q2 2024 earnings summary

Executive summary

• Q2 2024 and 1H24 delivered strong operational performance with near 100% reliability, leveraging digitalisation and talent, despite external challenges such as forex volatility and Brent crude price fluctuations.

• Revenue for the first half of 2024 was RM3,266.9 million, down 1.4% year-over-year, mainly due to lower Utilities segment revenue, partially offset by higher Gas Processing and Transportation income.

• Net profit for the period rose 2.0% year-over-year to RM963.2 million, driven by lower financing costs and reduced forex exposure.

• Dividend per share for the quarter was maintained at 16 sen, reflecting a sustained commitment to shareholder returns.

• Board approved a second interim dividend of 16 sen per share (RM316.6 million), payable on 19 September 2024.

Financial highlights

• Q2 2024 revenue: RM1,650 million, up 2% sequentially from Q1 2024, but down 1.4% year-over-year; 1H24 revenue: RM3,266.9 million.

• Gross profit for the first half was RM1,198.1 million, flat year-over-year, cushioned by lower operating costs.

• EBITDA increased by 3.8% year-over-year to RM1,706.8 million.

• EPS for 1H24 at 46.78 sen, up 1.8% year-over-year; interim dividend of 16 sen per share declared.

• Total assets as of June 30, 2024: RM18.2 billion, down 5.8% due to bullet repayment of RM1.2 billion Islamic financing.

Outlook and guidance

• Business costs are expected to remain high for the rest of 2024 due to persistent energy and commodity price volatility.

• Maintenance activities and costs are anticipated to be higher in the second half of the year.

• New growth projects, including two power plants (Sabah and Labuan), are progressing, with expected CODs in 2026 and 2028, respectively.

• Commitment to sustainability, targeting reduced GHG emissions and increased recycling rates.

• Focus remains on cost optimisation to mitigate inflationary pressures; minimal FX impact after lease liability settlement.