PETGAS 2QFY25 Results In Line; Maintain HOLD: Analysts

Kuala Lumpur, August 26, 2025 – Analysts reviews Petronas Gas Berhad’s (PETGAS) 2QFY25 core net profit (CNP) at RM446.8m (-4.6% YoY, -4.1% QoQ), with 6MFY25 CNP at RM912.5m (-2.7% YoY). Results met expectations at 49% of full-year forecasts.

Dividend Declared. Second interim dividend of 16.0sen (unchanged YoY), YTD DPS at 32.0sen (flat YoY).

QoQ Decline. CNP fell 4.1% due to weaker Gas Transportation (op profit -16.3% from RM23m Putra Heights repair costs), Gas Processing (-3.4% on higher opex), and JV/associates (-23.7% on maintenance). Offset by Utilities (+22.6% from lower fuel costs) and higher other income (doubled via RM30m insurance claim).

YoY Drop. CNP down 4.6% mainly from Gas Transportation (-23.4% on tariff cuts and repairs), offset by Utilities (+14.2% on lower fuel).

PETGAS – Results

YTD Performance. CNP slid 2.7% YoY, dragged by Gas Transportation (-17.8% on tariffs and repairs), offset by JV/associates (+37.1% on lower maintenance).

Briefing Highlights. Putra Heights pipeline restoration in two phases: Phase 1 complete (July 2025, costs expensed); Phase 2 by 3Q2026, seeking RAB inclusion. RM9m PPE write-off covers incident losses; total repairs RM26m (RM23m in 2Q). No further write-offs or claims; total profit hit ~RM60m, potential extra costs. No insurance received yet.

Outlook. 3QFY25 MRP up to RM39.24/MMBtu; expect higher headline results QoQ from no repairs and RM52m BASF settlement. Medium-term growth from RP3 (2026-2028) via higher RAB/gas demand, plus JV boosts from Sipitang (52MW), Kimanis (100MW), Labuan (120MW).

Earnings Revision. No changes.

Valuation & Recommendation. Maintain HOLD, TP RM17.80 (SOP-based, 3-star ESG). Implies 18.1x FY26F EPS (+1SD 5-year mean PE). Catalyst: New RGT contract (e.g., Lumut, +RM2/share). Defensive with >85% stable profits, ~4% yield.

Risks. Rising gas prices, unplanned shutdowns. – Apex Research

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