The solid performance was delivered on the back of improved margins from the utilities business segment, further supported by favourable foreign exchange movement.
Commenting on PGB’s performance, managing director and chief executive officer Abdul Aziz Othman said, “The solid 1H FY2021 results reflects our sound operations and capital management strategy.”
“While we continue to improve our operational efficiency and rationalise costs, we expect a slight increase in overall repair and maintenance compared to last year with relatively more plant reliability activities planned for 2021.
“We will enhance our focus on growth and expansion in the utilities segment by offering integrated energy and utilities solutions to industrial parks in Peninsular Malaysia.”
The results were commendable, proving PGB’s resilience due to its long-term contracts which ensure stable earnings from gas processing, gas transportation and regasification segments.
Additionally, the utilities segment benefitted from the change in fuel gas pricing from regulated to reference market price effective November 2020 amidst higher volumes from existing and new customers.
PGB’s six-month revenue to June 30, 2021 stood at RM2.72 billion, slightly lower than the RM2.80 billion recorded in 2020. This was mainly attributable to lower revenue from utilities in line with lower product prices amidst higher sales volume.
Gross profit nevertheless improved by 2% from RM1.28 billion to RM1.31 billion with the utilities segment recording significantly higher contribution as a result of higher margins and lower operating costs.
Comparing Q2 2021 against the same quarter last year, PGB’s revenue declined from RM1.40 billion to RM1.38 billion mainly due to lower product prices affecting revenue from the utilities segment.
PGB’s gross profit fell 11% from RM675 million to RM600 million, attributable to higher operating costs at gas processing, gas transportation and regasification segments in line with higher level of planned activities in 2021.
Proft after tax (PAT) reduced by 19% from RM574 million to RM464 million in tandem with the lower gross profit, coupled with unfavourable foreign exchange movement and lower share of profit from joint ventures.
PGB announced an interim dividend of 16 sen per ordinary share for Q2 FY2021, similar to the dividend announced for Q2 FY2020.
PGB recently began commercial operations of its third nitrogen generation unit with a total capacity of 16,000 Nm3, located within its Kertih utility complex. The new unit is targeted to sustain the reliability of supply to existing customers as well as delivering requirements to new customers.