PetGas projects minimal impact from pipeline fire

PETALING JAYA: PETRONAS Gas Bhd (PetGas) expects a total financial impact of RM170mil from the April 1 gas pipeline fire in Putra Heights, Selangor.

In a filing with Bursa Malaysia, the downstream gas distributor said a significant portion of the amount is expected to be capitalised under the company’s capital expenditure, with partial recovery anticipated through insurance claims.

“Revenue loss due to service interruption is projected to be minimal at approximately RM20mil, owing to proactive collaboration between PetGas, the authorities, gas shippers, and distributors in rapidly restoring pipeline services and stabilising supply.

“The total profit impact to the group, combining repair costs and revenue loss, is currently estimated at RM60mil for this year,” the company said in its filing.

In light of the incident in April, PetGas said it is further strengthening its risk management and mitigation frameworks to ensure continuity, resilience, and sustainability across its operations.

“The company will continue to provide timely updates and make further announcements should there be any material development relating to this matter.”

PetGas said comprehensive business contingency plans were activated in coordination with the relevant authorities and key stakeholders to ensure gas-supply stability and facilitate the restoration of pipeline services in the affected area.

“PetGas continues to work closely and transparently with the authorities to determine the root cause of the incident and identify contributing factors.

“An independent taskforce was also established to provide strategic oversight of the post-incident investigation, recovery and restoration activities, the safety of gas transportation infrastructure, and other related matters.”

Separately, PetGas posted a net profit of RM468.8mil or earnings per share (EPS) of 23.7 sen for the first quarter ended March 31 (1Q25), up 2.6% year-on-year (y-o-y) from earnings of RM456.65mil or EPS of 23.1 sen in 1Q24.

The improved profit was contributed by a higher share of profit from joint venture companies due to higher repair and maintenance incurred in the corresponding quarter, the company said.

Revenue for the quarter dipped 1.5% y-o-y to RM1.59bil due to lower revenue from its gas transportation and regasification segments following downward tariff adjustments arising from sharing factor for prior year’s lower internal gas consumption.

PetGas’ other main segments are utilities and gas processing.

Nevertheless, PetGas declared a first interim dividend of 16 sen per share, with an entitlement date of June 12 and payable on June 24.