Assalamualaikum and good morning, everyone. Welcome to PETRONAS Gas Berhad analyst briefing for the fourth quarter ended 31st December 2025.

Thank you for joining today's session organized via the Microsoft Teams platform. Just to get things organized, can I have someone say something through Teams just to see if we're connected?

Hello, testing.

Thank you. I am Suri, Head of Investor Relations PGB, and I have with me Encik Abdul Aziz Othman, Managing Director and CEO of PETRONAS Gas Berhad, Encik Shahrul Azham Sukaiman, Chief Financial Officer, as well as Encik Wan Khairul Nizam Wan Kassim, Head of Business Development and Commercial.

PETRONAS Gas Berhad analyst briefing for the quarter ended 31st December 2025 is divided into four segments. The first segment, Encik Aziz will present the key highlights for PETRONAS Gas Berhad for the financial year 2025.

Next, in the second segment, the business updates and financial performance will be shared by Encik Shahrul Azham. Following that, there will be a briefing on the recently announced RP3 tariffs by Encik Wan Khairul Nizam.

In the third segment, Encik Aziz will share PGB's focus moving forward. Finally, we will open the session for Q&A.

All participants are reminded to obey the session's rule where everyone should be on mute throughout the presentation. The presentation was also shared with you prior to the session through this Microsoft Team channel for your reference.

You are allowed to ask questions during the Q&A. Please be reminded to press the raise hand button and we will open the microphone for the selected participant.

You may also post your question in the chat box and we will select any question to be answered. For reference, our financial results is now available at both Bursa Malaysia and PGB website.

To continue with the briefing, I call upon Encik Aziz to share his presentation.

Thank you, Suri. Assalamualaikum and good morning, everyone.

Thank you for joining us. I'm pleased to share with you PETRONAS Gas Berhad financial year 2025 performance results.

Over the past quarter and throughout 2025, PGB continued to operate in a challenging and dynamic environment. While inflationary pressures and market volatility kept the overall cost of doing business elevated, the strengthening of ringgit to provide partial cost relief, helping to moderate the impact of external pressures on the group operations.

Ringgit strengthened against USD throughout financial year 2025, appreciating to 4.15 ringgit Malaysia per USD by quarter four, supporting cost management efforts and helping to limit the impact of foreign exchange movements on projects economics. The Malaysia Reference Price, the MRP, declined further to RM36.64 per mmBtu, and this is consistent with the softening trend from 2024.

Looking ahead, MRP is projected to ease to about RM33 per mmBtu in quarter one 2026, and this broadly tracking the expected movement in Brent crude prices. Meanwhile, as we have indicated previously, Suruhanjaya Tenaga has implemented a new electricity tariff structure under the electricity Regulatory Period 4 effective 1st July 2025 together with revisions to the Fuel Cost Adjustment mechanism which is adjusted monthly.

This new structure replaces the previous tariff structure that has been in place since 2014. The new RP electricity tariff includes a component of Automatic Fuel Adjustment or AFA.

This is similar to the ICPT mechanism. For the first six months, there have been a rebate resulting in unfavorable impact to our utilities segment relative to the prior years.

Strategies and mitigation measures are in place, of course, to manage the cost implications and maintain operational efficiency under the new tariff regime. Against this backdrop of challenges in the external environment, PGB continued to maintain a healthy, stable performance throughout 2025 financial year.

Compared to 2024, the group demonstrated resilience in 2025 through disciplined operations, proactive asset management, and sustained cost optimization efforts. PGB group revenue stood at ringgit Malaysia 6,374 million, a decrease of 2.5% or ringgit Malaysia 164 million, primarily attributable to lower product prices in the utilities segment and downward tariff adjustment in the gas transportation segment.

Gross profit declined by 5.7% or 125, 129 million ringgit, mainly due to the low margins in the gas transportation segment, reflecting the reduced revenue coupled with cost incurred for gas supply restoration works, and this is following the Putra Heights pipeline fire incident, as well as the higher level of maintenance activities. The utility segment margin were also tighter in line with the lower revenue.

PBT, nevertheless, declined marginally by 0.6% only or 15 million ringgit as the impact of lower gross profit was cushioned by higher other income, including one-off income received arising from settlement with a customer. As a result, profit for the year is 1.836 billion, representing a decline of 4.5% or 88 ringgit Malaysia, million ringgit Malaysia.

The larger decline at the bottom line was mainly due to higher tax expenses following the non-recurrent of the once-off investment tax allowance recognized in the prior year. EBITDA marginally higher by .6% or 21 million ringgit, albeit a lower PBT mainly due to higher depreciation expenses during the year.

Earning per share decreased by 5.9% as reflecting lower profit attributable to shareholders of the company. Board of Directors has approved a fourth interim dividend of 22 cents per ordinary share, this is amounting to 435 million ringgit in respect of the financial year ended 31st December 2025.

PGB remained disciplined in delivering our portfolio of growth projects aligned with our long-term strategy to strengthen operational excellence and deliver sustainable value creation. Key projects that achieve financial investment decision such as our fiber optic infrastructure projects and the 120 megawatt power plant in Labuan.

Both projects are progressing well within our mitigation measures. We also achieved a key milestone at Pengerang with the third LNG storage tank project reaching commercial operation in August 2025.

Overall, this outcome reflect our continued focus on execution discipline and strong project governance. In parallel, on 1st October 2025, PGB announced its proposed internal reorganization.

Under this, the group will streamline its core operations by transferring the asset, liabilities, and activities of its gas transportation, gas processing, and utility businesses into three new wholly owned subsidiaries. This restructuring aimed to provide a clear distinction between regulated and non-regulated segment, enabling a sharper operational focus and supporting the group medium to long-term strategic direction.

Court-convened meeting, CCM, was subsequently held on 12th February 2026 where the resolution was tabled and received a successful voting outcome. Inshallah, we work towards go-live date by end of quarter three.

In addition, the government has approved PGB's revised RP3 tariff for gas transportation and regasification. This is effective from 1st January 2026 to 31st December 2028.

Set under the Incentive-Based Regulation, the IBR framework, these revised tariffs reinforce supply reliability and are expected to continue driving positive contribution from the transportation and regasification segment. Wan Khairul will share further details on this in the later segment.

On the sustainability front, we continued to strengthen the transparency and robustness of our disclosure in line with the FTSE4Good Index series. In 2025, we maintained our overall FTSE4Good score of 4.7, including a full score of 5 in the governance lens, reflecting the strength of our oversight and corporate governance practices.

At the same time, our Bloomberg ESG score improved from 5.31 in 2024 to 5.36 in 2025. This signaled steady progress in quality, consistency, and breadth of our ESG reporting.

Ladies and gentlemen, following the Putra Heights pipeline incident on 1st April 2025, PGB responded swiftly through effective pipeline management, close coordination with government and key stakeholders, and proactive community support. Our immediate priorities were clear: the safety of people, care for affected communities, environmental protection, and security of gas supply to the nation.

The impacted pipeline was promptly isolated, the fire was contained on the same day, and comprehensive contingency plans were activated to stabilize operations. We also fully recognized the impact on the surrounding community.

In the immediate aftermath, PGB provided more than 1.2 million ringgit in immediate monetary assistance to individuals and families experiencing total or partial property loss, complemented by 2.7 million ringgit in additional cash and medical aid disbursed within the first week to address urgent needs. PGB extended support through a range of community-focused initiative, including a 25 million ringgit contribution to the Ministry of Housing and Local Government's or KPKT Tabung Amanah Bencana to facilitate house repair.

This was complemented by the launch of Laman Claim and Connect to support third-party insurance claims related to home repairs and house content, as well as mental health assistance, reinforcing our commitment to long-term community recovery. Key milestone was achieved on 1st July 2025 with DOSH-approved gas-in for the temporary pipeline, restoring regular flow to the PGU system.

While the incident resulted in one-off costs, the overall impact was contained and manageable, allowing PGB to deliver a resilient financial year 2025 performance while continuing to advance our long-term growth agenda. As recovery effort continue, PGB remains guided by the principle of accountability, care, and long-term responsibility with an emphasis on restoring trust, strengthening resilience, and supporting sustainable recovery of the communities affected.

Now, we come to the details of our business and financial performance. As always, this section will be presented by Shahrul.

Over to you, Shahrul.

Thank you, Encik Aziz, and good morning, everyone. I will take you through the individual segment business and financial performance for quarter, quarter four 2025 and for the full year and before I went to explain about the full group performance for the year.

During the year, for gas processing, the segment maintained a high reliability, consistently meeting increased sales gas demand as gas supply fully normalized from 1st July 2025. This has resulted in the gas processing achieving nearly 100% overall equipment effectiveness, maximizing performance-based incentive.

For year 2025, two gas processing plant units in Kertih and one unit of gas processing plant in Santong have successfully completed plant turnarounds in complying with the statutory requirements, resulting in further enhanced reliability. As for the financial performance for gas processing, against the corresponding quarter, quarter four 2024, segment revenue declined marginally by 0.3% as a result of lower IGC incentive, which is in line with the lower gas price, while segment results results rose by close to 20%, driven by lower operating expenses supported by optimization efforts.

Against the corresponding year, 2024, segment results increased by 8.3% or 66.7 million ringgit, in line with lower operating expenses, and this is a resultant from the continued cost optimization initiative, including leveraging in-house digital tools such as predictive analytics on plant parameters, which helps to avoid unplanned plant interruption, hence minimizing reactive maintenance activities. Right, moving on to the gas transportation.

As mentioned by Encik Aziz earlier, despite the Putra Heights incident on the 1st of April 2025, our pipeline network have remained largely reliable during the year. We had worked continuously to restore the pipeline services in the affected area and have achieved achieved gas-in for the temporary bypass.

The recovery and restoration works are progressing as planned, with completion targeted by end of this year. Having said that, the financial performance for gas transportation, against the corresponding quarter, quarter four, and against corresponding year, FY 2024, segment revenue decreased for both quarter and full year as a result of downward tariff adjustment, mainly due to sharing factor for prior years lower IGC in accordance with the Incentive-Based Regulation framework by Suruhanjaya Tenaga.

Segment results fell by close to 70% against the corresponding quarter and lower by 30% against the full year, following the lower revenue coupled with higher operating expenses. Operating cost increased due to cost incurred for the gas supply restoration works arising from the Putra Heights incident, coupled with higher level of maintenance activities, mainly for preventive maintenance and measures undertaken to address emerging operational risks, as well as higher depreciation expenses in line with increased capital expenditure, as well as higher utilities following the operationalization of new infrastructure for the southern region.

Moving on to the next segment, regasification. The group's LNG regasification in Sungai Udang, Melaka and Pengerang, Johor sustained their strong reliability performance through the effective maintenance programs.

During the year, LNG regasification in Sungai Udang competed completed the LNG berth maintenance, which includes the replacement of marine fenders and overhaul of marine loading arms. Against the corresponding quarter and corresponding year 2024, segment revenue grew by 6.2% or 21.3 million ringgit against corresponding quarter and 1.7% or 23.3 million ringgit against corresponding year, mainly contributed by additional revenue from providing LNG storage services at Pengerang, Johor, which commenced in August 2025, as mentioned by Encik Aziz earlier.

Correspondingly, segment results increased by 21.1% or 37 million ringgit for the quarter and 1.3% or 7.7 million for the full year, in line with the higher revenue, while for full year this was partially offset by higher operating costs, primarily due to increased depreciation expenses and lease expenses arising from the new floating storage unit at Pengerang. Moving on to the utility segment.

Our utilities plant registered close to 100% product delivery reliability for most of our the products. As mentioned by Encik Aziz earlier, effective 1st July, the segment has seen unfavorable impact of the Regulatory Period 4, RP4, electricity tariff application, but this unfavorable impact of the new tariff being negated by higher products volume offtake by customers, particularly for steam product, which has cushioned the impact of this new tariff.

The continuous reduction of MRP has resulted in lower product prices for steam and industrial gases for the year. Nonetheless, the segment has benefited from lower operating expenses, mainly attribute- attributable by reduced fuel gas cost arising from favorable gas price movement and improved fuel efficiency, coupled with optimizations of maintenance activities.

With that, the financial performance for utility segment against the corresponding quarter, quarter four 2024, despite reduced revenue, mainly due to downward revision of the tariff for electricity, segment results increased by 3.8% or 1.8 million following the favorable impact of lower fuel gas price under the MRP. For the quarter-to-quarter, average fuel gas price was lower by about 13%.

Financial results against corresponding year 2024, segment results fell by 9.2% or 26 million ringgit following lower revenue due to the lower tariff and product prices, by only partly negated by favorable impact of lower fuel gas cost following downward movement in the average fuel gas price by around 8% on year-on-year. Let's move on to the overall group financial performance.

This year's group performance was underpinned by a steady operational reliability. Gas processing achieved nearly 100% OEE following successful turnarounds and normalized gas supply.

Gas transportation remained dependable with swift restoration after the Putra Heights incident. Regasification terminals sustained high reliability through preventive maintenance, while utilities delivered close to 100% product delivery reliability despite lower tariff and product prices.

Overall performance remained resilient for the year and expected to be the same moving forward. Based on that, against the corresponding quarter, quarter four 2024, and corresponding year 2024, the group revenue for the quarter of 1.57 billion ringgit decreased slightly by 2.8% or 44.7 million ringgit, while full-year revenue of 6.373 billion ringgit decreased by 2.5% or 164.4 million ringgit, mainly from utilities segment in line with the lower product prices, and due to gas transportation segment following a downward tariff adjustment arising from sharing factor for prior years lower IGC price.

This impacts were partly cushioned by higher revenue from providing LNG storage services at Pengerang, Johor, which commenced in August 2025. Gross profit declined by 4.3% or 20.8 million against corresponding quarter and 5.7% or 129.7 million ringgit against corresponding year, primarily due to lower margins in the gas transportation segment, reflecting the reduced revenue coupled with cost incurred for gas supply restoration works following Putra Heights pipeline incident, and higher level of maintenance activities, mainly for preventive maintenance as well as measures undertaken to address emerging operational risks.

Utilities segment margins were also tighter in line with the lower revenue. Profit for the quarter decreased by 5.3% or 22 million, and full-year profit of 1.836 billion representing a decline of 4.5% or 87.1 million ringgit.

This is in line with the lower gross profit, coupled with higher tax expenses in the current period as a result of the non-recurrence of one-off ITA which was recognized in the corresponding period. This impact is partly cushioned by higher other income, which includes the one-off income received arising from settlement with a customer, as well as we registered higher share of profit from our associates and also joint ventures.

Moving on to our balance sheet. The group's total assets of 19.8 billion was higher by 5.6% or 1.059 billion, driven by higher property, plant, and equipment from higher capital expenditure incurred during the year.

We successfully completed our RP2 commitment, and we have a good progress on our key group projects, namely the fiber optic infrastructure project, the 120 megawatt power plant in Labuan, LNG storage tank project in Pengerang, as mentioned by Encik Aziz earlier. It's a good capex spending during the year for PGB group of companies.

Meanwhile, total liabilities increased by 13.1% or 590.4 million ringgit due to recognition of a new lease liability in respect of the floating storage unit in Pengerang and lease modification from the prepayment of remaining fixed charges under jetty usage agreement for Pengerang LNG. Cash balance were moderated following higher capex spending during the year, but liquidity remains at healthy level, enabling dividends to be sustained and underpinned by our robust earning and disciplined capital management.

Mentioned by Encik Aziz earlier, the board has approved the fourth interim dividend of 22 sen per ordinary share payable on 24th of March 2026, amounting to 435.3 million ringgit for the financial year ending 31st December 2025. This demonstrates our commitment to ensure sustained level of return to the shareholders despite the business operating conditions.

That is all from me. Next, Encik Wan Khairul will share with all of us on the recently announced RP3 tariff.

Over to you, Encik Wan.

Thank you, Encik Shahrul. Good morning, everyone.

I will take you through the key highlight of the newly approved Regulatory Period 3 tariff for our gas transportation and regasification business. Following the government decision on the RP3, PGB is expected to continue contributing positive earning supported by its regulated business segment.

This outlook is underpinned by growth in the regulated asset base, driven by the successful execution of RP2 project. Under the approved RP3 tariff framework, higher operating costs have been recognized by Suruhanjaya Tenaga, including cost associated with a new asset.

In overall, return from our regulated business remain market-competitive and at par with comparable infrastructure-based companies. As part of the RP3 tariff approval, Suruhanjaya Tenaga had also introduced new mechanism, which is unpredictable opex and capex, to address risk arising from uncertain and unforeseen cost, such as cost resulting from the new government directive and other factor beyond PGB control.

For example, if there is any electricity price adjustment, this will be considered under unpredictable opex. Concurrently, PGB continue to pursue efficiency initiative on capital investment, which is aligned with capex efficiency carry-over mechanism, while continuing sustainability-focus effort to support long-term operational resilience and financial sustainability.

All right, let me start with PGU. The approved base gas transportation tariff is RM1.196 per gigajoule per day.

Additionally, a tariff of RM0.413 per gigajoule per day has been approved for high-pressure gas delivery to Singapore. The successful execution of RP2 project, which increased the regulated asset base, PGB will continue to invest in the PGU system under RP3 to sustain pipeline system safety, integrity, and reliability.

Key investment include the rejuvenation of the PGU pipeline system and completion of the Jeram compressor project, supporting growing gas demand in the northern region. To support higher transportation volume, additional opex allowance have been approved, primarily reflecting the forecast increase in operating cost and electricity consumption required to operate both existing and the new compressor facilities located in Kluang, Johor and Jeram, Selangor.

As continuation from RP2, the 100% cost pass-through mechanism for the internal gas consumption price will remain in place under the RP3. This reinforce tariff stability within the IBR framework and protect earning from gas price volatility.

Moving on to RGTSU, the government has approved the base regasification tariff of RM3.542 per gigajoule per day. The RP3 tariff is determined based on the assumptions that capacity utilization will be maximized at up to 100% capacity, driven by higher forecast gas demand in Peninsular Malaysia.

The tariff incorporate additional capex investment focused on system reliability and asset rejuvenation, ensuring the regas terminal remain robust and fit for long-term operation. This investment supports safe and efficient operation of RGTSU.

Anchored on forward-looking assumptions, opex allowance have been approved to reflect higher utility cost arising from the forecast increase in send-out volume. The opex allowance also enable RGTSU to meet regulatory compliance while upholding our contractual obligation in providing regasification services.

Similar to PGU, gas price risk at RGTSU is fully mitigated through 100% cost pass-through mechanism, providing further stability to earning. Lastly, the government had approved a base regasification tariff for RGTP of RM3.142 per gigajoule per day.

Similar to RGTSU, capacity utilization is also expected to maximize at up to maximum capacity in RP3, consistent with higher forecast gas demand in Peninsular Malaysia. Tariff is derived in accordance with the principle of cost-reflectivity, prudency, and efficiency within the IBR framework.

Under the RP3, the tariff provide for additional capex investment to sustain the integrity and liability of the regasification terminal, alongside routine schedule maintenance capex to ensure compliance with regulatory requirements. Opex allowance for RGTP have been approved to reflect cost associate with increased send-out volume, ensuring that efficient operating cost are appropriately recognized within the tariff framework.

In line with PGU and RGTSU, gas price risk is mitigated through 100% cost pass-through mechanism as well. In summary, the regulated business will continue to contribute positively to the group earning.

That's conclude my sharing. Now hand over back to Encik Aziz.

Thank you, Wan Khairul. With that briefing, I hope we have given you better clarity on RP3, which is going to be in effect for the next three years.

Next, let's touch a little bit on the outlook. Ladies and gentlemen, as our results continue to reflect our unwavering commitment to operational excellence, alhamdulillah, we remain well-positioned to sustain a healthy and stable performance throughout 2026, 2025 and 2026, underpinned by resilient operations and disciplined execution.

Now, I touched on Putra Heights, following the Putra Heights incident, in line with our focus on operational excellence, we have further strengthened our focus on safe, reliable, and efficient operations. We have reinforced risk-informed control, asset integrity assurance, and delivery discipline to safeguard the integrity of our pipeline network and ensure long-term business resilience.

Safety and project delivery excellence remain fundamental as we continue to enhance operational robustness and stakeholders' confidence. As part of this continued drive for operational excellence, I've mentioned early on, our internal reorganization will go live in quarter three 2026, and this will strengthen our end-to-end operational visibility, performance monitoring, and control across our operations.

The internal reorganization will support more disciplined execution, faster decision-making, and stronger risk oversight, reinforcing consistent and reliability across the group. At the same time, we are advancing our core business expansion.

This very much to support Malaysia energy security and energy transition agenda, progressing infrastructure development to meet the rising demand, and also pursuing opportunities under RMK13 and NETR, including potential regasification infrastructure and power plants. Now, beyond our core businesses, we are selectively pursuing adjacent and step-out opportunity.

The fiber network that we are building is an example of adjacent and step-out opportunity by leveraging on our existing asset. In the case of that projects, leveraging on the right-of-way that we have across Peninsular Malaysia and the capabilities to diversify revenue streams and deliver sustainable long-term value for our stakeholders.

That's all from me. I shall now pass over to Suri.

Thank you.

Thank you Encik Aziz, Encik Shahrul, and Encik Wan Khairul. We have now come to the question and answer session.

Please be reminded to continue to obey the session's rule where everyone should be on mute to ask a question. Please press the raise hand button and we will open the microphone for the selected participant.

You may also type your question in the chat box, and we will read it out loud for you. Let's start.

There's a first question here. We have first question from Isaac.

Yes, Isaac.

Hi, good morning, everyone. I have three questions, please.

First is in terms of the maintenance cost outlook for 2026 and onwards, how should we look at it? Should we look at fourth quarter was a one-off, preventive maintenance is high, or that should be the new base for going forward?

In particular, that's for the gas transport segment. Question number two is that how much is the capex under the RP3 and how does it compare to RP2?

The last question is that can you remind us what is the reserve volume for the gas transportation under the RP2 again? Thank you.

Three questions.

Thank you, Isaac. I think I think on the maintenance outlook, you should look at the full-year trend to look at what what is the trend, yeah, rather than quarter-by-quarter.

Sometimes, as there are constraints within a certain quarter, leading to lower spending, or sometimes turnaround you have in different quarter, the spending is higher. You should look at year full-year numbers as as a guide, yeah.

RP3 versus RP2, I think the in in general, there is an increase in tariff, right, in general. I think you can make the comparison.

The numbers are available in various platforms. In general, of course, some are higher, some are lower, but in general, for us, there is an average increase, right?

The third one, reserve volume? You mean the capacity, probably?

The shipper continue to reserve the same capacity as per RP2, yeah, because remember RP period is is a decision by government when it comes to tariff and the IBR regime. We do have a long-term contract with the shipper.

We have I think announced this quite a few times. In the case of pipeline, you're looking at mid-2030s, yeah, and the regas mid-2030s, and one of the regas probably until 2040s.

Isaac?

All right. Sorry, I just want to summarize this in a bit.

Can I assume that any increase in the maintenance opex during this period has been captured and will be compensated by the higher tariff under the RP3 already, is all taken into consideration?

Oh yeah, yeah. Remember that's under the IBR, the basis is the middle year of the RP2, whatever the numbers will be captured and then will be reflected in the new RP.

In as far as capex, once you spend, it will be translated into the RAB, yeah.

Thank you.

Thank you, Isaac. Next in line is Foong.

Hi, good morning, everyone. Thank you so much for the call.

A couple of questions from me. Firstly, I just want to go back to the question on the maintenance cost, right, high maintenance cost for gas transportation in the fourth quarter.

You mentioned preventive maintenance and undertaking some measures, right, to address emerging operational risks. Can I understand whether this is related still to the Putra Heights incident or is the maintenance measures that you took, right, was it related to something else?

Was it a planned maintenance or was it an unpredicted or unplanned maintenance? That's question number one.

Then on to the second question in relation to the RP3 tariffs, I note the substantial increase in the PGU tariffs, and you also mentioned that it's also reflecting or factoring in the higher costs that is to be expected in RP3. Can I understand what would be the net impact to your earnings from this increase in the PGU tariffs?

Do you expect it to boost earnings or would it be more of a neutral impact with the higher tariffs offsetting higher costs? Thirdly, in terms of the regulated return for RP3, I'm not sure whether you share this number.

If you could, yeah, it would be good if we can hear what the regulated return is for RP3, or if you can't disclose it, has it risen or fallen compared to RP2? Yep, those are my questions.

Thank you.

Thank you, Foong. For the maintenance cost for fourth quarter related to PGU is actually cover both the normal maintenance as well as if you keep on reading on the Putra Heights incident, owing to new risk that we have learned from the incident, we did some spending to take into consideration of the new risk.

To answer your question, the maintenance cost is actually covering both normal and some portion dedicated to Putra Heights enhancement. Now, the second question on earning RP3, yep, the earning is comparable to RP2.

Wan K. mentioned still going to give us positive impact to the company.

Regulated return, typically, we did not announce the return that the government has given, but what I can tell you is that it is comparable to peers in the industry, basically, those that are in the utility infrastructure business, regulated business.

Encik Aziz. If I can just quickly follow up, right, on the gas transportation earnings outlook under RP3, can you guide us a little bit on what you expect in terms of the EBITDA or EBIT margin for gas transportation in FY26?

Also just going back to what you mentioned just now, right, about the maintenance cost having two parts to it, right, and the second part, which is I think a little bit less of a planned maintenance, related more to the Putra Heights incident, is that going to be compensated back to PETRONAS Gas from the IBR framework?

Yeah. Two questions.

I take the second question first. As Wan K.

mentioned, in the new regime, there will be unpredictable opex and capex. If the cost is not part of what has been approved under RP3, it will be addressed together with ST on unpredictable capex or opex, yeah.

That's how we're going to handle this issue. The second part, again, on EBITDA, whatever, typically you can look from the announcement, but what I can say, the impact from RP3 is comparable to what you have been seeing on RP2, yeah.

Thank you so much, Encik Aziz.

Thank you.

Thank you,

Daniel. Daniel?

No, Daniel. It's Foong.

Sorry, thank you, Foong. The next one we have on the line is Daniel.

Good

morning, guys. Can you hear me?

Yes, Daniel.

I just want to kind of sum up just now the questions. A few questions.

Firstly, the question is on the higher maintenance capex, all this happened during the fourth quarter. Just want to double-check again, this higher opex and maintenance capex this was being done during the fourth quarter of 25, this one will actually get compensated under the RP3, is it, or no?

As I mentioned just now, the total capex in quarter four is not only at PGU, but also at other assets. The higher is across all the assets, but whatever the capex that we spend on PGU, if it's not in RP2, is not in RP3, then there is always the unpredictable capex and opex provision that we will be talking to ST.

That means the new tariff under the RP3 has already taken into account of whatever being spent for the fourth quarter of 26? The RP2, right?

The planned one, yeah.

For the planned one.

Yes.

Yeah. For the planned.

How

for the unplanned one under the RP2? For example, for Putra Heights and all the preventive measures that was being done on the fourth quarter.

This is considered unpredictable, right? This one will be compensated under RP3?

Yes, that's under the provision of RP unpredictable. What I can say, the big chunk is still under RP2 budget.

Big chunk is still under RP2. All right.

Can I check, if we do a numbers, right, can we easily assume that in the fourth quarter this additional chunk of our opex, all this, is it could come up to 60 to 70 million additional compared to third quarter or compared to previous quarters or compared to fourth quarter last year?

I don't think so, because, again, you should look at a full year. Again, our maintenance activities has many factors.

Sometime weather also will impact our maintenance activities, but what we plan for the full year is a better guidance for you.

Because what we are looking at, your quarterly numbers seems to be stable on the first nine months, just that your fourth quarter suddenly everything blow up, but we don't see environment that have changed.

Maybe my CFO also can

I think I may help, Daniel. I think, as mentioned Encik Aziz, there are both planned and unplanned maintenance activities undertaken in quarter four, and I think your question particularly for gas transportation.

I think the planned one, sometime during the year there's rescheduling of activities, but it's a planned activities. It can happen in any of the quarter.

Sometime it's being planned in earlier quarter, but the execution is a bit later, depending on the situation at the plant, whether there's a window for us to undertake the maintenance activities. I think certain portion of what happened in quarter four is what we call is one-off or is unplanned and that was not expected to happen in every quarter four.

I think that may help, Daniel.

How much is this unplanned capex so opex being spent in the fourth quarter?

I think around 15 million or so for quarter four.

15?

15, yeah.

Only 15? Yeah.

Okay. My second question is on the PETRONAS PGB gas processing incentive for the year, how much did you recognize for this year?

Last year was around 150 million, I remember. This year, how much was it?

IGC.

This year number last year was you were saying 100 million?

150 million.

150 million. I think it's about the same, just slightly lower than 150 million.

It's mainly because the gas price movement, because it's a function of the price and also volume, but I think volume-wise is almost similar to last year. What's changed during 2025 is the lower MRP price, because the incentive also tagged to gas price.

I see. Maybe allow me for another two quick questions.

The capex spending and the opex spending that is under RP2 and RP3, is it based on US dollar or based on ringgit Malaysia?

What we submit to ST and what being approved is all ringgit-based.

All in ringgit-based, but when you actually incur, the actual capex spending will be in US dollar, correct?

Certain portion, not everything. It's not something new, even before being regulated by ST, we do have cost component in dollar, but when we submit for RP, there's certain assumptions we put in in the submission, and we also do the necessary mitigation through hedging where necessary lah, where relevant.

Far, it hasn't caused much impact to us in terms of the currency lah.

Because we are seeing ringgit appreciated against US dollar quite substantially during the first part of this year, when you submit it during last year, the ringgit will have changed substantially already by almost 10%. I'm sure you're trying to guide us that although it's already appreciated by 10%, it will not really give you guys improved in margin, or you guys already fully hedged for the full portion of this cost?

No lah, it will not have significant impact. It ease the cost a bit, but not as significant, because the cost component in dollar also not as significant.

I see. All that's

Mostly, majority, the cost is in ringgit.

I see. My last question is, just now you mentioned it's under RP3, 100% of the cost of the internal gas consumption, IGC, it will be passed through to the off-taker, right?

Is this something new or I thought this is already implemented under the RP2 as well?

This is something which is already there. I just further emphasize that it will be continued during the RP3.

It will be continued lah. It's not something new, but it's already implemented in RP2.

It's not something new, yeah.

Great. Thank you very much.

That's all from me.

Thank you, Daniel. We have two more people here, but I think I'm going to give it to Dharmini first since Isaac has already posed his question.

Dharmini?

Thanks, Suri, and thanks everyone for this session. Just two questions from me.

First one is just going back again to gas transportation. If I could ask the question a different way, in 4Q, gross profit from gas transportation fell sharply.

It was down to about 35 million. If that preventive maintenance or the one-off related maintenance activities did not happen, what would the quarterly profit run rate be gas transportation?

Is the 120 million sort of range fair? My second question is just going back to the currency question.

Approximately how much of your capex and opex is linked to the US dollar? Just a rough estimate.

Thank you.

Dharmini, your first question, the gross profit for GT, right? Can you repeat again?

You were saying 120 million, you're referring to what?

It's 35 million for the fourth quarter, but the prior quarter it was 117 million, and before that it was about 119, so that's the sort of run rate prior two quarters. Can we assume that that is regular run rate assuming no such maintenance?

I think if you compare without the one-off, I think I mentioned just now the one-off about 15 million, but what you see in the reduction of gross profit for GT is not just maintenance activities, there's also higher depreciation expenditure that we incurred during quarter. Once we completed the project, we capitalized with quarter three of the year, then the depreciation will actually kicks in in quarter four.

Moving forward, the depreciation will be part of the yearly expenditure of which already considered under the new RP tariff. I would say that increase in depreciation in quarter four will be normalized because it will be covered through the recovery through the earning from ST.

It's fair to say that it will be lower than the second and third quarter sort of run rates, but definitely significantly higher from

Yeah. Your second question on the USD exposure, I think for both opex and capex, the exposure to dollar is less than 5% of the total capex and also opex.

Thank you very much. That's very

Thank you, Dharmini. I think we will take one last question from Tan.

Hi. Can you guys hear me?

Yes.

Yeah. Can I ask, is the 100 megawatt Kimanis plant on track for completion this quarter?

Can you repeat your question?

Is the 100 megawatt Kimanis plant on track for completion this quarter?

Based on current progress, we are looking at June, which is based on the approved PPA timeline.

Okay. My second question is, is there any new projects within the company that we should be aware of that's in the pipeline?

We will make an announcement if we reach FID stage, yeah. Rest assured, we are working on opportunities because that's always a growth agenda that we are pursuing, as I mentioned in the outlook, along those area of focus.

We hope that we can reach FID in some of this and make the necessary announcement as the time come, yeah.

Thank you.

Thank you, Tan. Thank you so much for your active participation and engagement.

That's all the time we have for today. We hope to see you again in the next first quarter's analyst briefing.

Thank you.