Good day, thank you for standing by. Welcome to PETRONAS Gas Berhad Analyst Briefing for quarter ended 30th September 2022 conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there'll be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, to Izan Ishak. Please go ahead. Thank you, Dylan. Good morning, everyone. Thank you for joining our session today for PETRONAS Gas Berhad Analyst Briefing for quarter ended 30 September 2022. I'm Izan from Investor Relations. With us from PGB, we have Encik Abdul Aziz Othman, Managing Director and CEO, Encik Shahrul Azham Sukaiman, CFO, and Encik Hisham Maaulot, Head of Business Development and Commercial. We will start the briefing with key highlights, business updates, financial performance, and to be followed by Q&A. For reference, our financial results is available at both Bursa Malaysia and PGB websites. The material is available at our website and also at the webcast host platform. Without further ado, I'll hand over to Encik Aziz for the highlights. Aziz? Thank you, Izan. Asalamu alaikum, and good morning, everyone. Thank you for joining us today. Let us start with the key highlights. Now, as we close the third quarter of 2022, as always, PGB continues to deliver steady revenue stream from all business segments. All this are on the back of our world-class operational performance. We continue to ensure that our facilities are running safely, reliably and efficiently. In addition, in ensuring product delivery reliability, the excellent operational performance has actually resulted in higher incentives achieved by our gas processing business. I will elaborate further later on this. Nevertheless, the rise in Malaysia Reference Price, the MRP, then the further weakening trend of our ringgit against U.S. dollar and the imposition of Prosperity Tax have impacted the overall group performance. With a little over a month until the end of the year, we anticipate that the trend of the higher fuel gas price and further weakening of ringgit will further impact our full year results. All is considered, nevertheless, we are able to declare an interim dividend of MYR 0.18 per share for this quarter. Now, let's look at the external environment out there, page seven. If you look at this chart, you can see that Brent crude price has tapered down from more than $100 per barrel in quarter two 2022. Still at high level of $97 per barrel in quarter three 2022. The MRP, however, continue to increase because MRP lags Brent by four months. Because of the lagging effect, is still on the rise, as shown by this slide. At the same time, the other factor that have affected us, ringgit, continue to depreciate against the U.S. dollar. Meanwhile, our average sales gas delivered is picking up. This is in line with the latest indicators showing that Malaysian economic activity strengthened further in quarter three, driven primarily by robust domestic demand. The high volume of production and product delivery are attached to higher operating costs, which has brought down our profitability compared to the year before. Let's look at the financial snapshot, the financials, comparing the nine months of 2022 with the same period of 2021. PGB revenue stood at MYR 4.53 billion. This is higher by 9%, mainly contributed by higher revenue from utilities segment on the back of higher product price and higher electricity sales volume recorded. Of course, we enjoy the higher price because the higher gas price that we pay, part of it we can transfer to the customer, thereby allowing us to enjoy the higher product price. The group gross profit declined by MYR 1.9 billion due to tighter margin recorded by utilities segment, as mentioned, because of the higher fuel gas costs, as well as higher operating costs at regasification and gas transportation segments. Profit after tax was lower at MYR 1.3 billion, in tandem with lower gross profit, further reduced by unfavorable forex and higher effective tax rate, following the imposition of a Prosperity Tax. Our EBITDA correspondingly lower at MYR 2.5 billion. As you know, you can see the 11% decrease in EBITDA also is in line with the decrease of gross profit. Less the impact of unrealized forex loss, a non-cash item which impacted our P&T. Earnings per share was lower by 20% as compared to nine-month 2021. This is in line with the lower profit. Dividend per share for the quarter is MYR 0.18, making it a total of MYR 0.50. This is same to the same period as we have paid last year. Details of our financial performance, of course, as always, will be presented by Shahrul, after this. Let's move to the business update. First, on the gas processing. The operation at our gas processing plants continue to be at world-class levels. Business segment continues to operate in a steady manner, where the OEE or the overall equipment effectiveness remain high for both C1 and C2, methane and ethane. The more efficient we are, the less we use internal gas for our operation, hence, the more incentive we get. Also, through the term of the GPA, by extracting more C2 or ethane from the sales gas, we will get additional incentive. The high level of efficiency correspond to the MYR 95 million of performance incentive achieved in the nine months of 2022. On the projects, the off gas rerouting project from the Terengganu Crude Oil Terminal or TCOT to our gas processing Kerteh complex is progressing within schedule, and we still plan to meet the timeline by quarter three 2023. Next is the gas transportation. Pipeline network reliability for the quarter was sustained at 100% reliability. We achieved an average sales gas delivered of 2.2 billion standard cubic feet per day, which is a 16% increase from third quarter of 2021. On projects, there have been a slight delay on the lateral gas pipeline to Kluang Industrial projects due to change in construction method. However, we are managing it, and we will work on meeting the timeline. The new completion date, nevertheless, will not have an impact on the shipyard's gas delivery commitment as it is set to also meet the timeline of the customer. As for the gas compressor station in Kluang and the new pipeline project to Banting, things are progressing as per schedule. Moving on to regasification, page 12. For the regasification business, both RGT Sungai Udang and RGT Pengerang sustained strong OEE performance at 100% during the quarter. We received a total of 41 cargoes year-to-date. Our ancillary services, especially the LNG truck loading service, has continued to perform well, serving our clients throughout Peninsular Malaysia. Our LNG truck loading service has achieved 180 deliveries in the quarter. By year-to-date September, we recorded higher amount as compared to the same nine-month duration last year. On the third storage tank project at RGTP, our latest assessment indicates higher project costs. Of course, this is because of the current price involving steel, construction, et cetera. This has led for PGB to step back, relook at the execution approach, and re-strategize on our project approach. We're still proceeding with trying to get this project off the ground despite the challenges on the high cost environment that we are facing today. The project is not canceled. We are targeting the final investment decision by mid-2023. This is again because of the change in the project execution approach. The project progress will be revisited once we firm up our decision on the investment decision. Utilities. Can we move to page 13? Overall, we continue to fulfill customers' demand. Continue with 100% product delivery reliability for electricity and steam. This is because of the higher plant availability and reliability, as well as customers reliability which supports the higher demand. For electricity, quarter three 2022 was lower against quarter three 2021 and quarter two 2022 on lower sales due to unfavorable pricing during the quarter. Steam offtake is a similar level across the quarters. Industrial gases, quarter three 2022 was at similar level to quarter three 2021, but higher than last quarter due to customer lower plant availability in quarter two 2022. We mentioned about the contracts last quarter. With improved pricing structure to allow for more balanced pass-through cost of gas, which have resulted in improved quarter-to-quarter margin for utilities segment. However, the new commercial arrangement only partly mitigate the higher fuel costs from the rising MRP, as you will see in the segmental financials. On the projects to build the connection to PETRONAS Chemicals Group is in its final stages of completion. We expect the project to be completed in this quarter. For projects update, you know, while we are striving for operational excellence, we are also pursuing long-term value from project delivery excellence and investment decision for new growth and sustainable projects. Since 2021, as I mentioned to you in last quarter, we have been continuously investing in projects to enhance our revenue contribution for GPU business and also adding up to regulated asset base under GTR business. So far, we have sanctioned approximately MYR 1.4 billion worth of projects since 2021. As at September 2022, we completed the Southern PGU debottlenecking projects. We expect all other projects to complete within their respective timeline. As mentioned earlier, the third LNG storage tank is being reviewed, and we will share the firm timeline as soon as we get it finalized. There are also several power generation opportunities and integrated utility solution within industrial park that we are considering. We will announce all this accordingly when the times come. Okay. The last slide that I will share with you is little bit on our sustainability. As I mentioned to you in few of my communication, we approach sustainability on four strategic lenses of continued value creation, safeguarding the environment, ensuring positive social impact and responsible governance. This first time we're going to provide some update on this and what are the efforts that we have been doing throughout 2022. The first one is on continued value creation, where we ensure stable profit generation and as you all are aware, always underpinned by the long-term contracts. For this year, we have concluded the entity agreement for another 10 + 10 years, which in this case it will ensure that we will continue to collect the revenue for another 20 years. Of course, with our operational excellence, this in the short, medium and long term will ensure steady earnings and subsequently sustain return to our shareholders, thereby ensuring continued value creation to the shareholders of PGB. Next, on safeguarding the environment. This year we have created or charted our net zero carbon emission pathway. In September, we published it as part of our climate change risk management framework. This report is available at our website for your reference. Our commitment to net zero carbon emission is acknowledged by FTSE4Good as we remain a constituent in the index. On positive social impact, we consistently ensuring HSE excellence through good HSE culture to ensure safe and reliable operation at our facilities. We also support the growth of small and medium enterprises around us through the many contracts that we awarded for the operation and maintenance of our facilities. We also have embarked on the sponsorship for technical programs, not only to provide support for the communities, but also to develop and prepare technical talent for a future need of our operation. Lastly, in regard to responsible governance, we are also acknowledged on our effort in the area of governance. The recent announcement of MSWG's ASEAN Corporate Governance Award 2021 has proven PGB to be one of the top companies that promote responsible governance and ethical business practices. That's all on the business updates. We will now move to the financial segment with Shahrul. Over to you, Shahrul. Thank you, Encik Aziz. Good morning, everyone. Shahrul here, and I shall take you through the financial. Okay, let's turn to page 17. We will start with segmental performance with gas processing. In quarter 3 2022, the business maintained its world-class operational performance, recording close to 100% reliability. Against preceding quarter two, 2022, revenue for the quarter sustained at similar level at MYR 437 million. Gross profit was slightly lower by 1% at MYR 230 million, due to higher depreciation recorded in the quarter. Against corresponding quarter three, 2021, segment revenue increased by 2% following higher internal gas consumption incentive achieved. This was resulted from high optimization at the plant, as mentioned by Encik Aziz earlier. Conversely, segment results declined by 6% due to high operating costs as we're catching up with our activities in the plant. For results against the corresponding period, nine months, 2021, revenue improved by 2% to MYR 1.3 billion on higher internal gas consumption incentives achieved. However, segment result was slightly lower at MYR 695 million, due to higher operating costs. Next, moving on to gas transportation segment on page 18. Revenue for quarter three, 2022 sustained at MYR 294 million. Comparing against preceding quarter two, 2022, revenue was comparable with a slight increase by 1%, on the high number of operating days. Gross profit declined by 1% at MYR 174 million, mainly due to higher operating costs. Against corresponding quarter three, 2021, segment revenue was comparable. Segment gross profit decreased by 15% due to higher operating costs, mainly internal gas consumption, in tandem with higher fuel gas price, as explained by Encik Aziz earlier. Against corresponding period, nine months last year, segment revenue was comparable at MYR 873 million, while segment results decreased by 8% due to higher operating costs, similar reason as the quarter. Next on regasification. Against quarter two this year, revenue was 1% higher at MYR 357 million, as a result of higher number of operating days compared to preceding quarter. Segment result was 2% higher at MYR 186 million from lower operating costs. Against corresponding quarter three, 2021, segment revenue was comparable. Segment gross profit declined by 31% as a result of higher operating costs, mainly internal gas consumption in line with the higher fuel gas price. For the nine months result against corresponding period, segment revenue was slightly lower. Gross profit decreased by 10%, mainly driven by operating costs, attributable to higher internal gas consumption costs as similar to quarter three. Moving on to utilities on page 20. Comparing this quarter against preceding quarter, revenue increased by 13% to MYR 477 million, in line with higher steam and industrial gases sales. Segment gross profit rose by 66% to MYR 53 million, in line with higher volume of utility sales and better commercial terms from renewed contracts, as mentioned by Encik Aziz earlier. Against corresponding quarter three last year, segment revenue rose by 38%, mainly due to higher product prices in line with the increase of fuel gas price, which is based on Malaysia Reference Price. Segment result, however, declined by 28% attributable to tighter margin as a result of higher fuel gas costs. Similarly, against nine-month period last year, segment revenue grew by 38% to reach MYR 1.3 billion on higher product prices and electricity, higher electricity sales volume. Product prices were higher in line with higher fuel gas price, which is based on MRP. While electricity sales volume increased following commencement of electricity supply to grid under NEDA from August last year onwards. Segment gross profit, nevertheless, declined due to tighter margin as a result of higher fuel gas costs. Next on page 21. PGB group level. Against preceding quarter 2, 2022, group revenue was at MYR 1.56 billion, higher by 4%, mainly contributed by higher revenue from utility segment. Gross profit saw an increase of 3% at MYR 644 million, with utility segment recording improved contribution on the back of high revenue. Profit for the quarter increased by 6% high gross profit, coupled with higher share of profit from joint venture companies. Against corresponding quarter 3, 2021, group revenue increased by 10%, mainly contributed by higher revenue from utility segment. Gross profit decreased by 19% due to lower contribution from all segments following higher operating costs, mainly relating to fuel gas and internal gas consumption costs. Profit for the quarter decreased by 28%, in line with lower gross profit, weaker ringgit, as well as higher effective tax rate from the imposition of Prosperity Tax. Looking at the same period year-to-date, 2021, group revenue increased by 9% to MYR 4.53 billion, again, mainly driven by higher revenue from utilities in line with higher prices. Gross profit was nonetheless lower by 11% on the back of higher operating costs. The PAT declined by 20% in tandem with lower gross profit, coupled with weaker ringgit, as well as higher effective tax rate from the imposition of Prosperity Tax. As for dividend, the board has approved the third interim dividend of MYR 0.18 per share, amounting to MYR 356.2 million, which is payable on 12th December 2022, and the interim dividend demonstrates our commitment to ensure sustained level of return to shareholders, despite the ongoing economic challenges. With that, I end the financial section. I will now pass the line over to Encik Aziz to share on company update. Thank you, Shahrul. Ladies and gentlemen, looking at the remaining quarter of 2022, not a long time. On RP2, I think we've mentioned this. We have submitted our proposal to ST, of course, together with several recommendations as part of our effort to de-risk. One is the price volatility of the fuel gas, as we talked a lot about today, as well as potentially to de-risk the Forex. Also some of the things that we talk about today. As of today, we have yet to get any indication on the final outcome and when the new tariff will be announced. We hope to get the announcement soon, nevertheless. On projects, I've earlier shared the latest regarding the third LNG storage in Pengerang. Further update on our growth pursuit will be announced in 2023. Looking ahead, we anticipate continued adverse impact from the higher fuel gas price and unfavorable Forex affecting our financials. Nevertheless, PGB Group's performance in 2022 is expected to remain resilient, even as we contend with a weakening ringgit and elevated fuel gas price. Last but not least, we will continue to embed sustainability efforts within the business, whether in operation, commercial, and others. We are working on the long-term target as well as various initiatives which we will share once that is published soonest. That's all for now. Thank you, everybody. Let's move to question and answer. Thank you, sir. As a reminder, to ask a question, you will need to press star one one on your telephone. We ask that you keep your questions to no more than two, but please feel free to go back into the queue, and if time permits, we'll be more than happy to take your follow-up questions at that time. If you have a question at this time, please press star one one. Please stand by while we compile the Q&A roster. I show our first question comes from the line of Daniel Wong from Hong Leong. Please go ahead. Hi. Can you guys hear me? Hello? Yes. Yes. Hi. Thanks. Okay. Thanks for the briefing. Morning, everyone. I have two questions here. Firstly, will the gas pressure be similar to last year? The second thing, can I get a sense of, you know, you always mention the higher input fuel costs and IGC, internal gas consumption. Can I check? Sorry, Daniel. Your line is breaking. Yeah. Can you repeat both questions? Because we missed both questions, actually. Oh, sorry. Hold on. Can you hear me now? Yeah. Clearer? Okay. Far, yeah. First question is on the gas, right, gas cost. Can I check as of year to date or so forth or third quarter on third quarter. How many percentage of your operational cost is from IGC or natural gas cost for your transportation and also on the regasification side? My second question is, will PETRONAS Gas maintain a special dividend similar to last year? Okay. Thank you, Daniel, for the question. As far as dividend, let's wait until we complete the year on whether we have special dividend or not. As of this moment, we are not in the position to discuss or mention about that. Yeah. On IGC, Shahrul, do we have the number? Okay. On IGC. So far, our year to date, out of our total operating expenditure is roughly about 5% of our total expenditure. Yeah. IGC cost. 5% of transportation and also 5% of the regasification? Yes. Out of the total group. Total group, Daniel, but we don't have that information on the regasification and. Yeah pipeline. The total IGC cost for the transportation and the gas is 5% of the total group operating expenditure. Okay. Understand. Thank you. Yeah. Thank you. Thank you. As a reminder to ask a question, please press star one one. If you have a question at this time, please press star one one. I have one question from the webcast. Sean Lim of RHB. Can you please explain IGC cost mechanism again, whether it will be recouped entirely in RP one? If not, how much is not being recouped, and would it be recouped in RP two? Okay. The internal gas consumption works RP by RP. Now, at every RP, ST will provide the amount. Will agree with us what will be the volume and price. For the first two years of RP one, we actually. The cost is lower than what we have agreed with ST. For this year, we are above the amount that we have agreed with ST. Over the full RP one, we are still below what has been agreed with ST. This one, what we understood with ST is that it will not be adjusted when we come into RP two next year. Yeah. Now, we are an infrastructure company. What we are proposing for RP2 is for us only to be charged on the volume that we use, but the price, it should be adjusted year by year or RP by RP, because as an infrastructure company, we should not be exposed to the gas price, gas price. That proposal we have put up to the ST, and we are waiting for ST decision as far as RP2 and beyond. I hope that is clear, Sean. Any questions from the line? I'm not showing no further questions at this time, so I'd like to turn the call back over to Izan Ishak for closing remarks. Thank you. Yeah, it seems like there's no further questions from the web or from the line. If there's nothing else, we will end the session today. Thank you for calling in. See you next quarter. Thank you. Thank you. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.