Good day. Thank you for standing by, and welcome to the PETRONAS Gas Berhad analyst briefing for quarter ended 30 September 2021. At this time, all participants are in a listen-only mode. There will be a presentation followed by a question and answer session. At which time, if you wish to ask a question, you will need to press star one on your telephone. I must advise you that this conference is being recorded. I would now like to hand the conference over to your first speaker today, Izan Hajar Ishak. Thank you. Please go ahead. Thank you, Rochelle. Salam alaykum and good evening, everyone. Thank you for joining our session today for PETRONAS Gas Berhad's analyst briefing for quarter ended 30 September 2021. My name is Izan from Investor Relations. From PGB today we have Encik Abdul Aziz Othman, Managing Director and CEO. Puan Shariza Sharis Mohd Yusof, CFO. And Encik Ishak Maulud, Head of Business Development and Commercial. We will start the briefing with highlights, company performance, updates, to be followed by Q&A. For reference, our financial results is available at both Bursa Malaysia and PGB website. The presentation material for today's briefing is available at our website and also at Intertrust web platform. Without further ado, I'll hand over to Encik Aziz for the highlights. Encik Aziz? Thank you. Thank you, Izan. As-salamu alaykum, and good evening, everyone. Thank you for joining us today. First and foremost, there has been a lot of progress since the last analyst briefing in August. In the third quarter of 2021, Malaysia was actually in phase one of the National Recovery Plan and put under tight restriction with limited business activities. As you were seeing that this was evident as the Malaysian economy contracted by 4.5% year-on-year in quarter three 2021, weighed down by consumption and investment activities. The Industrial Production Index, IPI, also saw contraction in July and August, again, due to weakness in the manufacturing and electricity sectors before climbing back up in September. As of November, Malaysia has now moved into phase four of the National Recovery Plan, where all sectors are open and interstate travel, social activities, and domestic tourism begins to pick up. Fortunately for PGB, our revenue is not affected as we are backed, again, I've mentioned quite a few times, by long-term agreements, with PETRONAS for the gas processing, gas transportation, and regasification. We saw some relaxation in the guidelines. As we saw some relaxation in the guidelines, there was some pickup on plant activities, as you will see in the results, later. If we can move to the next slide. As for PGB, we have had an eventful quarter. Operationally, our plants and facilities sustained high reliabilities across all our business segments, resulting in the gas processing business achieving the agreed target incentives. Our third nitrogen generation unit, the NGU, has begun delivering additional sales volume to the customers. On top of our business as usual, we have achieved several key milestones in the commercial and growth areas. In September, we successfully secured a new long-term agreement to supply nitrogen to PETRONAS Chemicals Ethylene. PETRONAS Chemicals Ethylene is a new customer to PGB, as they have previously contracted their nitrogen supply from another supplier. In addition, we successfully retained our utilities customers by extending our supply agreement with Pengerang Terminals, INEOS Acetyls, and BASF PETRONAS Chemicals, respectively. As for growth, work on the lateral gas pipeline to Pulau Indah, as well as the debottlenecking the southern region pipeline are progressing as planned. We have also announced on 1 October, if you've seen on our website, the intention to build another tank at our regasification terminal facility in Pengerang. More on this in the company update, section later. If we can move to the next slide. Looking at the financials. For the quarter ended 30 September 2021, PGB recorded MYR 1.43 billion revenue, higher than the same quarter last year and the preceding quarter to this year. Again, this was mainly due to the higher sales from utilities and the new revenue stream under ancillary services in the regasification segment. Group gross profit rose to MYR 793 million on the back of lower operating costs, particularly the utilities and regasification segment. Profit after tax was in line with the gross profit. Although we were slightly affected by unfavorable foreign exchange movement, causing PAT to be 3% lower when compared to quarter three in 2020. Meanwhile, for the nine-month performance, revenue was 1% lower at MYR 4.15 billion, mainly due to lower product price for utilities products amidst a higher sales volume. Gross profit was nevertheless 4% higher at MYR 2.11 billion on stronger margins from utilities and regasification segment as a result of higher margins and lower operating costs. PAT similarly improved by 4% to reach MYR 1.62 billion. More details on our financials will be presented by Shariz after this. If we can go to operational performance, which is on page 10 of the slide pack. The operations at our gas processing plants continue to operate as usual. The OEE or the overall equipment effectiveness remain within range for both C1 methane and C2 ethane. We achieved 99.9% sales gas reliability, which demonstrated our commitment to the customers, as well as the effort that we have put up to ensure the reliability. The high level of efficiency also resulted in MYR 72.3 million of performance incentives achieved to date. If we can move next to the gas transportation and regasification segment. The pipeline network reliability was sustained at close to 100%, and we delivered an average of close to 2 billion standard cubic feet per day of sales gas to customers. For the regasification business, both RGT Sungai Udang and RGT Pengerang sustained its OEE level at 100%. During the quarter, RGT Sungai Udang received 7 cargos, while RGT Pengerang received 20 cargos, making it a total of 27 cargos received. We can now move on to utilities. Overall, we continued to fulfill customers' demand with 100% product delivery reliability recorded across all products. For electricity, volume in Q 3 2021 has improved, mainly contributed by sales to new customer and higher offtake from our excess capacity following the new NEDA agreement, which we secure effective August 2021. Steam also recorded higher volume in line with demand from new customers, which is in Gebeng, and no turnaround undertaken at the existing customers' plant. Meanwhile, the industrial gases saw improved offtake compared to quarter 3 2020 following no shutdown at customer site and the delivery of low-pressure gas nitrogen to new customers from our third nitrogen generation unit in Kerteh. That's all for operational performance. We will next move to the financial segment with Shariz. Thank you, Encik Aziz. Assalam alaikum and hi everyone. Shariz here, and I'll be taking you through the financials. If you could please refer to page or slide 14. We will start with the gas processing segmental performance. For gas processing against preceding quarter two of 2021, we saw comparable revenue at MYR 430 million. Gross profit was higher by 15% at MYR 245 million, as we recorded low operating costs. Against the corresponding quarter three of last year, segment revenue was also comparable. Segment results declined slightly by 1%, as we had a marginally higher operating cost, mainly high depreciation expense, in tandem with the capital expenditure. This was offset by lower planned maintenance costs. Against the corresponding period, which is the nine months of 2020, our revenue was comparable at MYR 1.29 billion, while segment results was lower slightly by 2% at MYR 701 million. Similarly, on higher operating costs, again, our depreciation expense in line with the capital expenditure. Moving on to our gas transportation, which is on page 15. Under the Incentive-Based Regulation or IBR, the RP1 tariff for the PGU pipeline network remains unchanged for 2021. Comparing against quarter 2 2021, we saw higher revenue slightly by 1%, mainly due to the higher number of operating days. Gross profit rose by 15% to MYR 205 million on lower operating costs during the quarter. Against corresponding quarter, Q3 2020, segment revenue was also comparable, while gross profit decreased by 9% on higher operating costs, mainly internal gas consumption costs, which is a pass-through cost under IBR tariff. IDC tends to correlate in line with the sales gas delivered. Obviously in 2021, there was a higher volume in line with the recovery of the economy, and hence the internal gas consumption for the PGU network was higher. Against corresponding period, nine months of 2020, revenue remained comparable at MYR 875 million. Although we did see lower number of operating days coupled with lower operations and maintenance services revenue. Segment results declined by 7% to MYR 581 million on higher operating costs, mainly relating to IDC as well as the maintenance costs, as we saw activities picking up this nine months compared to last year. Moving on to the regasification segment, which is on page or slide 16. Again, the RT1 tariffs remain unchanged until December 2022 for both regas terminals in Sungai Udang and Pengerang. In terms of results against quarter two 2021, we saw improved revenue by 1% to MYR 357 million, again, due to higher operating days, just calendar days, while segment results was 94% higher at MYR 269 million, as we recorded lower operating costs. This was largely attributable to higher Internal Gas Consumption cost charged in Q2 2021. In Q3, there was a refinement in terms of the method of calculating IGC for the regasification terminal. Hence we saw a lower IGC cost in Q3 compared to Q2. Moving forward, this should be normalized as we have landed on the right method or the more appropriate method in determining IGC for the regasification terminal. Against the corresponding quarter three 2020, segment revenue improved slightly by 2%, as we saw the introduction of new revenue streams from the LNG reloading at Sungai Udang as well as truck loading at Pengerang, while segment results rose by 25%, as a result of lower operating costs, again, attributable to internal gas consumption and utilities costs. Against the corresponding period, nine months of 2020, we saw the segment registering slight growth by 1%, at MYR 1.06 million, similarly due to the ancillary services, which is the LNG reloading and truck loading services. Segment results rose by 10% to MYR 604 million on lower operating costs. This was largely attributable to lower utilities expenses. Last but not least, moving on to utility segment on page 17. The segment saw changes in terms of its fuel gas cost pricing from regulated price to reference market price effective 1 November 2020. Now, on the sales and utilities product pricing allows for costs to be passed through with the exception of electricity. This means that a decrease in fuel gas price in terms of cost would generally result in favorable margin impact and vice versa. Comparing against the preceding quarter of quarter two of 2021, revenue rose by 11% to MYR 346 million, as we saw higher volumes across all products as well as higher prices for steam and industrial gases. The higher sales volume was achieved on the back of higher customer demand, coupled with the commencement of electricity supply under the new electricity dispatch agreement on EDA, as mentioned by Abdul Aziz earlier. Segment gross profit stood at MYR 74 million, higher by 5%, as we had lower operating costs. Against last quarter three 2020, segment revenue increased slightly by 3%, on the back of higher contribution from electricity and steam sales as to new customers. Segment results surged by 59% as we saw favorable margin impact due to the lower gas, fuel gas costs, as well as the lower depreciation expense due to fully depreciated assets which are still in use. Against nine months, similar trend to corresponding quarter, revenue declined 6% to MYR 933 million on lower product prices amid higher sales volume from new customers. However, segment results improved by 69% to MYR 209 million, again, due to the favorable margin impact of lower fuel gas costs, as well as lower depreciation expense. Moving on to the group level, which is on page 18. Against preceding quarter, we saw group revenue at MYR 1.43 billion, higher by 2% as we recorded higher revenue from utilities segment. Gross profit surged by 32% to MYR 793 million, driven by lower operating costs. This was largely attributable to the lower IGC, as mentioned earlier, from the regasification segment, while PAT or profit after tax was correspondingly higher by 32% at MYR 690 million. Against the corresponding quarter, group revenue improved slightly by 1%, as we saw higher revenue from utilities and regasification segments. Gross profit was higher by 8%, again, with high contribution from regasification segment, mainly to do with the internal gas consumption as well as utilities. Profit after tax, however, declined by 3%, as the impact of the higher gross profit was negated by unfavorable foreign exchange movement. We recorded unrealized foreign exchange loss of MYR 10.4 million relating to the translation of USD-denominated assets and liabilities in quarter 3 of 2021, which contrasts to a gain of MYR 94.3 million registered in the corresponding quarter last year. Finally, year-on-year against nine months of 2020, we saw group revenue declining slightly by 1% to MYR 4.15 billion on lower utilities revenue. Gross profit nevertheless improved by 4% with stronger utilities and regasification margin, while PAT also improved by 4%, although the higher gross profit was partially offset by lower share profit from Pengerang Gas Solutions Sdn. Bhd., which is one of our joint venture companies, which recorded lower sales volume. Moving on to the balance sheet on page 19, as at 30 September 2021, our total assets remain robust, MYR 18 billion, as we had a higher cash and cash equivalents, as well as trade and other receivables offset by lower property, plant, and equipment balances, due to the depreciation. In terms of distribution of segmental assets, this remained similar to previous quarters. Moving on to dividends on page 20. Today, the board has approved a third interim dividend of MYR 0.18 per share, amounting to MYR 356.2 million, which will be payable on 20 December. The interim dividend demonstrates our continued commitment to ensure the sustained level of returns to our shareholders, despite the ongoing economic condition. With this, I end the financial section and would like to pass over the line to Aziz to share on some company updates. Thank you. Thank you, Sharif. Moving on to updates. Can you hear me? Because I saw some comments about. Okay. Okay, thank you. Some of you might already know, PGB actually issued an announcement on October 1, 2021 to seek an expression of interest from the market regarding the possibility of building an additional LNG storage tank in Pengerang. The decision to pursue opportunities in the LNG storage capacity business is based on our commercial study, where we found that the recent growth of the global LNG market has led to rapid expansion of LNG re-export business, especially in the emerging market and, of course, in the traditional market of Northeast Asia. Our LNG regasification terminal in Pengerang, or RGTP, is strategically located within the region, which provide competitive advantage to support the growing LNG demand in Asia. Therefore, the EOI announcement is to gauge market interest in booking our tank capacity, especially for storage and reload services. We expect the new LNG storage tank with a potential tank size from 160,000 cubic meters to 260,000 cubic meters. If we can FID it upon confirmation of the EOI to be ready by 2025 or thereabout. Of course, again, subject to the date of the final investment decision. This business, while it is located at Pengerang, as part of current regulated business, will be part of unregulated business. We expect to be run still by the joint venture company of our PFLNG 2. That's all, what I have for now. Let's move on to Q&A. Thank you. Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you wish to ask a question, please press star one on your telephone keypad and wait for your name to be announced. If you wish to cancel the request, please press the pound or hash key. First question comes from the line of Jian Yuan Tan from Affin Hwang Investment Bank. Please ask your question. Hi. Greeting everyone. I just have one question now to point, Sharif, on the regas, which you explained earlier. Do you mind elaborating why was there an accounting adjustment again and the nature of it? And did I get it correctly that there was an overcharge in second quarter and subsequently it's just a reversal in the third quarter? Thank you. Thank you for the question. There was an adjustment made in Q3. Obviously, this ITC is a relatively new concept under RP1. Previously, we did not have to purchase the ITC, and we did not have to recover it through tariffs. We have actually refined the ITC for the regasification terminal. There was an adjustment made in quarter three. This should. Moving forward, the level should be normalized. A good way to look at it is to look at quarter two and quarter three and average it out as an indicator moving forward. Again, you know, the ITC, there's two elements. First of all is the direct consumption, which is relatively easy to determine. There is also an element called unaccounted for gas. I think some of you are aware, because I know some of you have read the tariff guideline. For this unaccounted for gas, again, it's because it's something relatively new, the mechanics of the charging and the methodology was sort of like refined in quarter three with the ECT who supplies the ITC. Hope that answers the question. Okay. Right. Thanks, Sharice. Just to follow up regarding the unaccounted gas. Basically, that part of the unaccounted portion, based on the previous method, kind of fluctuates whenever there is an unusual volume in terms of the operation. Am I right? The amount should not fluctuate too greatly moving forward. Because, yeah, obviously, you know, you should be able to account for most of your gas. Jian, the PGU system is a closed system. By right, the gas should be accounted for, but there's a time lag when we do the measurement. We have found a better mechanism, as Sharice mentioned. With that, the fluctuation should not be that big as what we have seen before. Okay. That explains. Thank you so much. Your next question comes from Alex Goh from AmBank. Please ask your question. Yes. I have a few questions. One is regarding your additional LNG tank in Pengerang that you're looking at. Could you run through again, what is the actual size? Based upon that size, what would be the actual CapEx that we are looking at, given the fact that raw material prices have gone up? That's my first question. My second question is, could you give a bit of clarity on the impact of a Cukai Makmur on 2022's tax, whether you know, you can offset that with some of your capital allowances from the new projects? Yeah. My second question is regarding on your utilities. Your margin improved, and because of the change in your pricing mechanism. Could you run through again exactly how does the change in the pricing mechanism actually lead to the higher margin? On the first question, the third tank, first question was on the actual size. As I mentioned in my presentation, it would depend on the indication from the customer. So at this moment, if you look at the typical LNG tank size, it is between 160,000-260,000 cubic meters. Again, we cannot disclose CapEx and the charging mechanism yet because that is something that we are still working based on the EOI terms that we have issued out. So depending on the customer's feedback, then we work on the numbers accordingly. Yeah. The second one, the impact of Cukai Makmur, I think you're very well aware that PGB, the cap... The revenue is consistent because of the long-term contract governed by regulatory whatnot. Our effective tax rate also you know there are some increase because of this Cukai Makmur, I think. I suppose you can estimate based on the indication of Cukai Makmur for your guidance going forward. Yeah. Okay. The- Generally, how many percentage points do you think it would change your effective tax rate? Well, without giving a very specific number, I think maybe what might help. We have informed this in the past as well. The regasification terminal at the moment do enjoy tax incentives. I'm quite sure you can extrapolate based on that as well as on the incremental amount yeah of the tax of the 33%. Okay. Could you run through again what is your projection for your CapEx next year? Yeah, in terms of, CapEx. Yeah, sure. For 2022, we are looking at just over MYR 1.3 billion. This at the moment does not include some of the projects, which we are looking at. So, once we have announced, those projects, if they come to fruition, then we will update the guidance for next year. At the moment, roughly just over MYR 1.3 billion. Okay. There's a third. Yeah. Alex, there's a third question that we have yet to answer. You asked about the utilities margin. Again, the way the utility business is structured, you have electricity and then the rest of the utilities. The electricity is the price that we sell to the customer is pegged to the TNB tariff, whereas the other utilities, there is a formula that will allow for a transfer of gas price to the customer. Again, as Sharif mentioned just now on the electricity side, you cannot transfer a portion of the gas price because the tariff is fixed to TNB. If the gas price go down, you will enjoy some margin on the electricity. Of course, if the price goes up, you will enjoy deterioration of the margin. That's how the mechanism work for the utilities. Okay, great. Thank you. Just one last question: could you advise what is the stage of your progress on your southern pipeline project as well as the lateral gas pipeline work currently? I don't have a specific percentage, but what I can tell you it's progressing as per schedule at this moment. Both the lateral to Pulau Indah power plant as well as the southern debottlenecking projects that you asked. Okay, great. Thank you very much. That's all for me. Thank you. Thank you. Your next question comes from Anshul Singhvi from J.P. Morgan. Please ask your question. Hi, can you hear me? Yes. Yes. Yeah. I'm sorry I joined the call a bit late, but could you just share with us what was the amount of adjustment in the regasification segment made this quarter? We did not disclose the amount, but as mentioned, a way to look at it is to look at quarter two and quarter three together, in terms of the results. That should average out for two quarters, if that makes sense. Okay. To look at quarter two and quarter three together. Yeah. Got it. Yeah. About your new streams of revenue, the LNG reloading and the trucking performance, what was the contribution of those two new businesses? Right. In terms of the trucking business, the contribution for the nine months is around MYR 6 million. While the reloading for bunkering, which is at Sungai Udang, the contribution is just over MYR 7 million for the nine months. The nitrogen business? The estimated revenue, at least at on the revenue level, it's around about MYR 2 million a month, thereabout, depending on. There are also some liquid nitrogen sales, but this is on and off. Roughly about MYR 2 million a month. Sorry, just a clarification. The MYR 6 million and MYR 7 million are revenue or is it profit net profit? Yeah. Those are revenue figures, but for the ancillary services, they've got very minimal OpEx. OpEx, yeah. Yeah. Okay. My last question is about the JV performance this quarter. It was stronger. Any key reasons for that? Yeah. The improved performance on the JV, this is mainly due to Kimanis Power, which is our joint venture company in Sabah, which runs the power plant. Owns and runs the power plant. The better revenue mainly is in line with the recovery in the MCO. There was a better demand. Also, they recorded lower costs because they had lower inspection. They underwent minor inspection in the previous quarters. There was also lower costs. The third element is they also benefited on favorable Forex movement as well because they have some hedging on their long-term USD contracts. Understood. Thank you so much. You're welcome. Thank you. Thanks. Your next question comes from Tan Chee Wei from Maybank. Please ask your question. Hi. Thanks for the call. Just one question from me. Can I just gauge what the level of repair and maintenance activities will be for 4Q compared to 3Q by divisions? Thanks. Generally, in the fourth quarter, the level is a bit lower, obviously because, you know, for one, the weather. Monsoon season. Yeah. It's the monsoon season, so the weather does not really permit for too much of an activity. So in terms of the cost, it tends to be a bit lower in quarter four. Got it. Thanks. That is the plan. That's plan. That's the plan as well. Thank you. We have another question from Anshul Singhvi from J.P. Morgan. Please ask your question. Hi. Apologies. Could you share with us any updates regarding the RP2 discussions? How is it going, and what are the timelines? Okay. The RP2 submission is required by first quarter next year. Then upon the submission, there's supposed to be a discussion with Suruhanjaya Tenaga and for them to make the decision before the end of the term, which is in December 2022. At this moment, we are working together with our consultant on preparing the package that we are going to propose to Suruhanjaya Tenaga. We are on track for that submission. Thank you. Once again, if you wish to ask a question, please press star one on your telephone keypad.