PETRONAS Gas Berhad (6033) Q2 2026 earnings summary

Executive summary

• Group revenue for Q2 2026 was MYR 3.086 billion, down 3.1% year-over-year, mainly due to lower Utilities segment revenue from planned regulatory turnaround activities and reduced product prices, partially offset by higher Gas Transportation and Regasification revenue.

• Profit for the quarter was MYR 942 million, a 3% decline year-over-year, mainly due to lower Utilities margins and higher depreciation.

• EBITDA increased by 3.1% to MYR 1,747.4 million, reflecting resilient operations despite lower profit before tax.

• A second interim dividend of MYR 0.16 per share (MYR 316.6 million) was approved for FY2026.

• Mixed cost environment with lower Malaysia Reference Price (MRP) and resilient ringgit, but higher service-related and electricity costs persisted.

Financial highlights

• Gross profit declined by 2.8% (MYR 31.6 million) to MYR 1,113.3 million due to tighter margins and higher depreciation costs across all segments.

• Earnings per share decreased by 2.9% year-over-year to 45.08 sen.

• For the six-month period, revenue decreased by 3.1% (MYR 98.8 million), mainly from lower Utilities segment sales volume and product prices.

• Net cash from operating activities was MYR 1,505.4 million, up 1.2% year-over-year.

• Total assets at MYR 19.9 billion, marginally higher due to CapEx and JV investments.

Outlook and guidance

• Healthy performance expected for 2026, supported by stable regulated and long-term contracted businesses.

• Margin pressures from higher fuel gas prices and operating costs anticipated; focus remains on cost management, operational efficiency, and asset optimisation.

• Ongoing internal reorganisation to streamline business structure and maximize asset value.

• Growth projects (Kimanis, Sipitang, Labuan power plants, Lingkaran Fiber) expected to contribute 5%-6% to PBT from 2027, with Lingkaran Fiber offering potential upside.