Petronas Gas Bhd's (PetGas) net profit report for the first quarter ended March 31, 2022 (1QFY22) saw a decrease of 20.5% to RM410.58 million from RM516.4 million in the same quarter last year.
Adding to the wound, the counter traded among the biggest losers during the initial session on Bursa Malaysia on May 20, Friday.
During this morning's trading, PetGas shares opened 28 sen or 1.61% lower at RM17.08 before hitting as low as RM16.92.
As of this afternoon, PetGas shares were trading red 2.76% at RM16.88 with a market value of RM33.40 billion.
Revealing a report published on Thursday, May 19, PetGas' 1QFY22 net profit declined due to high fuel price factors as well as rising costs in the gas processing, gas transportation and regasification segments.
Nevertheless, its quarterly revenue increased 8.8% to RM1.46 billion from RM1.34 billion during 1QFY21.
According to the report, the growth in quarterly revenue was due to an increase in utility segment sales such as rising product prices and booming electricity sales volumes.
Meanwhile, PetGas also announced the first interim dividend of 16 sen per share dated June 3 which will be paid on June 16.
According to the company in the exchange filing, the higher effective tax rate with the imposition of Prosperity Tax for the year of assessment 2022 also contributed to the lower net profit.
Nevertheless, MIDF Research is seen maintaining a ‘buy’ status for PetGas with a price target (TP) of RM17.90 due to the company’s positive outlook based on good revenue and revenue streams.
The research company added that PetGas' gas transportation and regasification business segment is expected to continue to contribute positive revenue under the Regulatory Period 1 (RP1) tariff, which is effective until the end of the year.
