PETRONAS Gas Berhad (6033) Q3 2024 earnings summary

Executive summary

• Revenue for Q3/9M 2024 rose 1.2% year-over-year to RM 4.923 billion, mainly from higher gas processing revenue, offset by lower utilities revenue.

• Net profit for the period increased 4.8% to RM 1.5 billion, driven by reduced financing costs and favorable forex movements.

• EBITDA rose 5.1% to RM 2.608 billion, with EPS up 3% to 71.73 sen; dividend per share maintained at 50 sen for the year to date.

• Maintained nearly 100% operational reliability across all segments, supporting sustainable dividends.

• Achieved strong financial performance despite increased operating expenses and challenging market conditions.

Financial highlights

• Gross profit grew 0.8% to RM 1.795 billion, cushioned by lower fuel gas costs despite higher maintenance and inflation.

• Total assets stood at RM 18.5 billion, down 4.1% due to RM 1.2 billion Islamic financing repayment; cash and equivalents at RM 2.7–3.5 billion.

• Net cash from operating activities was RM 2.136 billion, down 4.6% year-over-year due to higher working capital movement.

• Return on equity stable at 13.4% as of 30 September 2024.

• Dividend payout ratio remains robust, with quarterly dividends sustained at 16–22 sen per share.

Outlook and guidance

• Business costs expected to remain elevated in Q4 2024, with higher maintenance and depreciation anticipated.

• Focus on operational excellence, project delivery, sustainability, and cost optimization, with growth in power and regasification projects.

• Anticipates higher CapEx in 2025, with a greater share for non-regulated growth projects.

• Strong opportunities from rising gas demand due to coal plant retirements and data center growth.

• Anticipates introduction of carbon tax by 2026 and tax incentives for CCUS development.