Petronas Gas Bhd`s (PetGas) net profit rose 6.67 per cent to RM515.46 million in the first-quarter (Q1) ended March 31, 2019, from RM483.22 million a year ago.

In an exchange filing today, PetGas said the higher earnings was attributed by unrealised foreign exchange gain and higher share of profit from a joint venture company.

Its Q1 revenue increased 1.48 per cent to RM1.37 billion from RM1.35 billion in the same period a year ago. This was due to higher contribution from gas processing and utilities offset lower revenue from gas transportation and liquefied natural gas (LNG) regasification Pengerang under incentive-based regulation.

The company said its gas processing segment was expected to deliver improved earnings pursuant to the higher fixed reservation charge under the second term of the 20-year Gas Processing Agreement effective from 2019 until 2023.

On December 31 last year, the Energy Commission approved the tariffs for the Gas Transportation and Regasification services for Pilot Regulatory Period in 2019.

"While the tariffs are expected to affect the group`s transportation and regasification business segment revenues in 2019, both segments are anticipated to continue contributing positively to the group`s earnings," PetGas said.

The company has also announced a first interim dividend of 16 sen per share, payable on June 27.

https://www.nst.com.my/business/2019/05/492069/petgas-q1-net-profit-rises-667pct-rm51546mil

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