PETRONAS Gas Berhad Q1 2025: Navigating Challenges with Resilient Performance
Hello fellow Malaysian retail investors! Today, we’re diving into the latest financial report from PETRONAS Gas Berhad (PGB) for the first quarter ended 31 March 2025. This report offers a crucial glimpse into the company’s performance, highlighting its resilience amidst market dynamics and operational challenges.
While PGB recorded a slight dip in revenue, it successfully boosted its Profit Before Taxation (PBT) and Profit for the Quarter, reflecting strong operational efficiency and strategic financial management. The announcement of a consistent interim dividend of 16 sen per share further underscores the company’s commitment to shareholder returns. Let’s break down the key figures and what they mean for PGB’s journey ahead.
Core Financial Highlights: A Closer Look at PGB’s Performance
PGB’s Q1 2025 results present a mixed picture, with some top-line pressures but robust bottom-line growth. Here’s a comparative overview of the key financial figures against the same period last year:
Overall Financial Performance (Q1 2025 vs Q1 2024)
Q1 2025
Revenue: RM1,594.5 million
Gross Profit: RM575.7 million
Profit Before Taxation (PBT): RM611.9 million
Profit for the Quarter: RM492.1 million
EBITDA: RM852.1 million
Earnings Per Share (EPS): 23.69 sen
Q1 2024
Revenue: RM1,618.8 million
Gross Profit: RM601.2 million
Profit Before Taxation (PBT): RM597.3 million
Profit for the Quarter: RM472.3 million
EBITDA: RM849.2 million
Earnings Per Share (EPS): 23.08 sen
While Group revenue saw a slight decrease of 1.5% (RM24.3 million), primarily due to downward tariff adjustments in the Gas Transportation and Regasification segments, the company managed to increase its Profit Before Taxation by 2.4% (RM14.6 million). This was largely driven by a higher share of profit from joint venture companies, which benefited from lower repair and maintenance expenses in the corresponding quarter last year. Consequently, Profit for the Quarter also rose by 4.2% (RM19.8 million), and Earnings Per Share increased by 2.6%.
Performance by Business Segments
Understanding PGB’s performance requires a look at its individual business units:
| Business Segment | Q1 2025 Revenue (RM’000) | Q1 2024 Revenue (RM’000) | Revenue Variance (%) | Q1 2025 Segment Results (RM’000) | Q1 2024 Segment Results (RM’000) | Segment Results Variance (%) |
|---|---|---|---|---|---|---|
| Gas Processing | 466,331 | 467,848 | -0.3% | 219,332 | 207,158 | +5.9% |
| Gas Transportation | 281,106 | 299,478 | -6.1% | 142,543 | 162,639 | -12.4% |
| Regasification | 332,273 | 336,205 | -1.2% | 144,264 | 156,219 | -7.6% |
| Utilities | 514,830 | 515,278 | -0.1% | 69,547 | 75,197 | -7.5% |
- Gas Processing: Maintained world-class operational performance. While revenue was comparable, segment results improved by 5.9% due to lower operating expenses.
- Gas Transportation & Regasification: Both segments faced downward tariff adjustments, leading to revenue declines of 6.1% and 1.2% respectively. This, coupled with higher operating expenses (especially maintenance in Gas Transportation), resulted in tighter margins and reduced segment results.
- Utilities: Achieved nearly 100% product delivery reliability. Revenue remained comparable, though segment profit declined by 7.5% due to a one-off purchase of liquid nitrogen to ensure supply continuity during an unplanned shutdown of an Air Separation Unit (ASU) plant.
Financial Health: Balance Sheet and Cash Flow
PGB’s financial position remains robust. As at 31 March 2025, total assets were comparable at RM18.8 billion. Total equity attributable to shareholders saw a marginal increase of 0.2% to RM13.98 billion, while total liabilities decreased by 1.9% to RM4.43 billion, driven by higher settlement of trade and other payables.
In terms of cash flow, net cash generated from operating activities was comparable at RM681.8 million. However, net cash used in investing activities increased by 30.8% to RM304.3 million, primarily due to higher capital expenditure. On a positive note, net cash used in financing activities was significantly lower, decreasing by 74.5% to RM417.1 million, largely because of a bullet repayment of an Islamic financing facility made in the corresponding quarter last year.
Navigating Challenges: The Putra Heights Incident and Future Outlook
A significant event impacting PGB’s outlook is the fire incident at its main pipeline near Putra Heights, Puchong, Selangor, on 1 April 2025. This incident occurred shortly after the quarter ended, and PGB has provided an initial assessment of its financial impact.
The estimated financial impact from repair and restoration works is approximately RM170 million, a substantial portion of which will be capitalised as capital expenditure, with partial recovery expected from insurance claims. Revenue loss from temporary service interruption is projected to be minimal, around RM20 million, thanks to swift collaboration with authorities and gas shippers to restore services. The overall estimated impact on Group profit for the financial year 2025 is projected at RM60 million.
Despite this operational disruption, PGB’s management expects the Group’s overall performance for FY2025 to remain resilient and stable. All core business segments are anticipated to continue their positive contributions to earnings.
In response to the incident, PGB is intensifying its focus on robust risk management, operational resilience, and proactive mitigation measures. The company reiterates its commitment to maintaining the highest standards of safety and operational excellence, alongside disciplined cost management and long-term strategic growth initiatives to ensure business continuity and sustainability.
Summary and
PETRONAS Gas Berhad’s Q1 2025 report showcases a company adept at navigating a dynamic environment. While facing revenue pressures from tariff adjustments and an unfortunate post-quarter fire incident, PGB has demonstrated strong underlying profitability and a commitment to shareholder returns through its consistent dividend payout.
The company’s ability to increase PBT and profit for the quarter, coupled with a robust balance sheet and strategic responses to operational challenges, paints a picture of a stable and well-managed entity. The proactive measures taken to address the Putra Heights incident, including cost recovery plans and enhanced risk management, are encouraging.
Key points from this report include:
- Despite a slight revenue dip, PGB achieved growth in Profit Before Taxation and Profit for the Quarter, indicating strong cost control and contribution from joint ventures.
- The Gas Processing segment showed improved profitability, while Gas Transportation and Regasification faced challenges due to tariff adjustments and higher operating costs.
- The balance sheet remains healthy, with a marginal increase in equity and a decrease in liabilities.
- The company maintained its dividend payout, reflecting confidence in its financial stability.
- The Putra Heights fire incident, while impacting FY2025 profit, is being managed with clear mitigation and recovery strategies.
Disclaimer: This blog post is for informational purposes only and should not be construed as financial advice or a recommendation to buy or sell any securities. Always conduct your own due diligence or consult with a qualified financial advisor before making any investment decisions.
What are your thoughts on PGB’s Q1 2025 performance? Do you believe the company’s strategies will effectively mitigate the impact of the recent incident and maintain its growth momentum in the coming quarters? Share your views in the comments section below!
