Content2011 - PETRONAS Gas Berhad

stAtements of ComPrehensive inCome
2011
RM million
Gas processing revenue 1,609.4 *
Gas transportation revenue 1,114.6 *
Group Increase/(Decrease)
2010
RM million RM million %
Throughput services income 2,724.0 2,475.0 249.0 10.1
Sale of industrial utilities 801.0 746.8 54.2 7.3
Revenue 3,525.0 3,221.8 303.2 9.4
Cost of gas processing (738.9) *
Cost of gas transportation (366.5) *
Cost of throughput service (1,105.4) (1,449.5) (344.1) (23.7)
Cost of industrial utilities (632.4) (594.0) 38.4 6.5
Cost of revenue (1,737.8) (2,043.5) (305.7) (15.0)
Gross profi t 1,787.2 1,178.3 608.9 51.7
Administration expenses (93.5) (79.1) 14.4 18.2
Other income and expenses 164.8 112.6 52.2 46.4
Operating profi t 1,858.5 1,211.8 646.7 53.4
Financing costs (20.1) (20.2) (0.1) (0.5)
Share of profi t after tax of equity
accounted associate and jointly
controlled entity
61.9 52.2 9.7 18.6
Profi t before tax 1,900.3 1,243.8 656.5 52.8
Taxation (461.2) (303.1) 158.1 52.2
Profi t after tax 1,439.1 940.7 498.4 53.0
Earnings per share (sen) 72.7 47.6 25.1 52.7
Profi t before tax / Revenue margin 53.9% 38.6%
Profi t after tax / Revenue margin 40.8% 29.2%
* Prior to 1 April 2010, the Company’s remuneration under the GPTA was classifi ed as throughput services
with no separation between gas processing and gas transportation remuneration.
Cost of revenUe
Cost of revenue for the Group decreased by 15.0% (RM305.7 million) from RM2,043.5 million
to RM1,737.8 million. This was due to lower operating cost incurred for throughput services by
23.7% (RM344.1 million) which was mainly attributable to lower Internal Gas Consumption
(IGC) as IGC is provided for by PETRONAS within the Agreed Operating Parameters (AOP)
under the 4th Term GPTA. However, operating cost for utilities business increased by 6.5%
(RM38.4 million) mainly due to higher fuel gas consumption in line with higher steam and
electricity production.
67 annual report 2011
During the year, the Group continued its cost
containment efforts, particularly in optimisation
of human resource cost, reduction in energy
consumption through operational effi ciency
and optimisation of material and supplies cost
through change in operational strategy.
The Group embarked on Inventory Value
Optimisation initiative to determine the
Group’s optimum inventory level and reduce
stock holding cost. Under this initiative,
obsolete and non-moving inventories were
identifi ed and written off during the year.
The Group will continuously monitor its stock
holding thus ensuring optimum inventory level
moving forward. In addition, the Group made
a provision for impairment of certain property,
plant and equipment during the year.
Gross Profit
Gross profi t for the Group in the year under
review showed a signifi cant increase of
RM608.9 million or 51.7% from RM1,178.3
million to RM1,787.2 million. Gross profi t
for throughput services increased by 57.8%
(RM593.1 million) from RM1,025.5 million
to RM1,618.6 million mainly due to higher
income from PBS and lower IGC for gas
processing. Similarly, gross profi t for the
utilities business increased by 10.3% (RM15.8
million) from RM152.8 million to RM168.6
million mainly due to higher revenue from
steam and electricity negated by higher fuel
gas cost in line with higher production.
other inCome And eXPenses
Other income and expenses for the Group
was higher by 46.4% (RM52.2 million). This
was mainly due to higher investment income
by RM31.2 million as a result of higher cash
and fund investment balance, coupled with
incentive payment of RM18.8 million from
PETRONAS for efficient usage of IGC.