PETRONAS Gas Bhd (PetGas) recorded its lowest level in more than two months since December 18, 2025 after the company reported a disappointing quarterly result.
PetGas shares fell by 5.8% or RM1.08 to RM17.52, before closing at 99 sen or 5.27% to RM17.62 yesterday, giving its market value of RM34.83 billion.
The performance put the gas company's counter on track for its worst decline in 10 years.
In a statement from Kenanga Investment Bank Bhd, PETRONAS Gas's full-year core net profit of RM1.69 billion was 9% below the company's estimate and 7% below the consensus estimate.
The decline was reportedly due to weaker gas transportation revenue projections following intensified preventive maintenance activities in the fourth quarter ending December 31, 2025.
However, Kenanga considered the revenue shortfall to be the only thing that happened, noting that PETRONAS Gas’s well-regulated business model would continue to support revenue visibility.
Kenanga also stressed that over 90% of the group’s revenue is covered under the Incentive Based Regulation framework, while Regulation Period 3 (RP3) reinforces stability and supports a dividend yield of about 4%.
At the same time, PETRONAS Gas is now poised to benefit from the strengthening ringgit against the US dollar as part of its capital expenditure, operating costs and lease payments are predominantly denominated in the latter currency.
CIMB Securities expects PETRONAS Gas to provide further clarification on the revenue impact of the revised gas transportation and regasification tariffs under RP3.
