PETRONAS Gas Bhd (PetGas) said the gas pipeline fire that occurred on April 1 is expected to result in a total financial impact of RM170 million, with RM60 million expected to hit the group’s earnings in its financial year ending Dec 31, 2025 (FY25).

In a filing with Bursa Malaysia today, the group said the bulk of the costs will be recognised as capital expenditure, while a portion is expected to be recovered through insurance claims.

“The RM60 million impact to profit comprises both the cost of repairs and the loss of revenue,” the group stated.

The estimates are based on the current site condition and extent of damage, but PetGas cautioned that they may be revised following the outcome of an official investigation.

“In light of the recent incident, the group is further strengthening its risk management and mitigation frameworks to ensure continuity, resilience and sustainability across its operations,” it said.

In a separate announcement, PetGas said it posted a net profit of RM468.8 million for the first quarter ended March 31, 2025 (1Q25), up 2.6% from a year earlier, mainly due to higher contributions from joint ventures, which benefited from increased repair and maintenance activities.

Quarterly revenue, however, slipped 1.5% to RM1.6 billion, primarily due to lower tariffs charged under the incentive-based regulation (IBR) framework.

Under this regime, energy companies are required to pass on cost savings — such as reduced gas consumption — to customers in the form of lower tariffs.

The company noted that its pipeline network remained “almost 100% reliable” during the quarter, underscoring the resilience of its core infrastructure.

Looking ahead, PetGas expects a stable operational and financial performance for FY2025, despite the April pipeline incident.

“All main business segments are expected to remain robust and continue contributing to the group’s earnings,” it said.

The group declared a first interim dividend of 16 sen per share for the quarter. — TMR