PETRONAS Gas Berhad (PETGAS) Earnings Call Transcript & Summary

Good morning everyone. Welcome to PETRONAS Gas Berhad's 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. Thank you, I am Suri, Head of Investor Relations, PGB, and I have with me Abdul bin Othman, Managing Director and CEO of PETRONAS Gas Berhad; Shahrul Bin Sukaiman, Chief Financial Officer; as well as Wan Khairul Nizam Wan Kassim, Head of Business Development and Commercial. PETRONAS Gas Berhad's analyst briefing for the quarter ended 31st December 2025 is divided into 4 segments. The first segment, 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 Shahrul Azham. Following that, there will be a briefing on the recently announced RP3 tariffs by Wan Khairul Nizam. In the third segment, Mr. Aziz will share PGB's focus moving forward. [Operator Instructions]. The presentation was also shared with you prior to the session through this Microsoft Teams channel for your reference. [Operator Instructions] For reference, our financial results is available at both Bursa Malaysia and PGB website. To continue with the briefing, I call upon Aziz to share his presentation.

Thank you, Suri. A welcome 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 provided a partial cost relief, helping to moderate the impact of the external pressures on the group operations. Ringgit strengthened against USD throughout financial year 2025, appreciating to MYR 4.15 per USD by quarter 4, supporting cost management efforts and helping to limit the impact of foreign exchange movements on project economics. The Malaysia reference price, the MRP declined further to MYR 36.64 per MMBtu. This is consistent with the softening trend from 2024. Looking ahead, MRP is projected to ease to about MYR 33 per MMBtu in quarter 1, 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 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 electric tariff includes a component of automatic fuel adjustment or AFA. This is similar to the ICPT mechanism. For the first 6 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. So 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 MYR 6374 million, decrease of 2.5% or MYR 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 MYR 129 million, mainly due to the lower margins in the Gas Transportation segment, reflecting the reduced revenue coupled with costs incurred for gas supply restoration work, 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 MYR 15 million as the impact of lower gross profit was cushioned by higher other income, including a one-off income received arising from settlement with the customer. As a result, profit for the year is MYR 1.836 billion, representing a decline of 4.5% or [ MYR 88 million]. The larger decline in the bottom line was mainly due to higher tax expenses following the nonrecurrent of the once-off investment tax allowance recognized in the prior year. EBITDA marginally higher by 0.6% or MYR 21 million, albeit a lower PBT mainly due to higher depreciation expenses during the year. Earnings per share decreased by 5.9% reflecting lower profit attributable to shareholders of the company. Board of Directors has approved a fourth interim dividend of MYR 0.22 per ordinary share. This is amounting to MYR 435 million in respect of the financial year ended 31st December 2025. PGB remained disciplined in delivering our portfolio of growth projects, in line with our long-term strategy to strengthen operational excellence and deliver sustainable value creation. Key projects have achieved 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, these outcomes reflect our continued focus on execution discipline and strong project governance. In parallel, on 1st October 2025, PGB announced its proposed internal reorganization, under which the group will streamline its core operations by transferring the asset, liabilities and activities of its Gas Transportation, Gas Processing and Utility businesses into 3 new wholly owned subsidiaries. This restructuring aims to provide a clear distinction between regulated and nonregulated 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 stable and received a successful voting outcome. Will work towards full life date by end of quarter 3. 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. 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 continue 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 signal 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 affected pipeline was promptly isolated. The fire was contained on the same day and comprehensive contingency plans were activated to stabilize operations. We also fully recognize the impact on the surrounding community. In the immediate aftermath, PGB provided more than MYR 1.2 million in immediate monetary assistance to individuals and families experiencing total or partial property loss, complemented by MYR 2.7 million in additional cash and medical aid disbursed within the first week to address urgent needs. PGB extended support through a range of community-focused initiatives, including MYR 25 million contribution to the Ministry of Housing and local governments or KPKT, [ abongmana ] to facilitate house repair. This was complemented by the launch of [ Laman ] 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 efforts 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, Aziz, and good morning, everyone. I will take you through the individual segment business and financial performance for quarter 4, 2025 and for the full year and before I 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, 2 gas processing plants units in Kertih and 1 unit of gas processing plant in Santong have successfully completed plant turnarounds in complying with the statutory requirement, resulting in further enhanced reliability. As for the financial performance, gas processing against the corresponding quarter, quarter 4 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 rose by close to 20%, driven by lower operating expenses supported by optimization efforts. Against the corresponding year 2024, segment result increased by 8.3% or MYR 66.7 million, in line with lower operating expenses, and this is 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. Moving on to the Gas Transportation. As mentioned by Aziz earlier, despite the Putra Heights incident on the 1st of April 2025, our pipeline network have remained largely reliable during the year. We have worked continuously to restore the pipeline services in the affected area and have 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 4 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 year's 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 costs increased due to costs incurred for the gas supply restoration works arising from the Putra Heights incidents, coupled with higher level of maintenance activities, mainly for preventive maintenance and measures undertaken to address emerging operational risk 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 completed the LNG bus maintenance, which includes the replacement of marine vendors and overhaul of marine loading arms. Against the corresponding quarter and corresponding year 2024, segment revenue grew by 6.2% or MYR 21.3 million against corresponding quarter and 1.7% or MYR 23.3 million against corresponding year, mainly contributed by additional revenue from providing LNG storage services at Pengerang Johor, which commenced in August 2025, as mentioned by Aziz earlier. Correspondingly, segment results increased by 21.1% or MYR 27 million for the quarter and 1.3% or MYR 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 Utilities segment. Our utilities plants registered close to 100% product delivery reliability for most of our products. And as mentioned by Aziz earlier, effective 1st July, the segment has seen unfavorable impact of the regulatory period for RP4 electricity tariff application, but this unfavorable impact of the new tariff being negated by higher product 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 attributable by reduced fuel gas costs rising from favorable gas price movement and improved fuel efficiency, coupled with optimization of maintenance activities. So with that, the financial performance for the Utilities segment against the corresponding quarter -- quarter 4, 2024, despite reduced revenue, mainly due to the downward revision of the tariff for electricity, segment results increased by 3.8% or MYR 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 result fell by 9.2% or MYR 26 million following lower revenue due to the lower tariff and product prices by only partly negated by favorable impact of lower fuel gas costs following downward movement in the average fuel gas price by around 8% year-on-year. So let's move on to the overall group financial performance. So 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 terminal 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 4, 2024 and corresponding year 2024, the group revenue for the quarter of MYR 1.57 billion decreased slightly by 2.8% or MYR 44.7 million, while full year revenue of MYR 6.373 billion decreased by 2.5% or MYR 164.4 million, mainly from Utility 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 year's lower IGC price. And these 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 [ MYR 3.8 million ] against corresponding quarter and 5.7% or MYR 129.7 million against corresponding primarily due to lower margins in the Gas Transportation segment, reflecting the reduced revenue, coupled with costs incurred for gas supply restoration works following Putra Heights fire incident and higher level of maintenance activities, mainly for preventive maintenance as well as measures undertaken to address emerging operational risk. Utility segment margins were also tighter in line with the lower revenue. Profit for the quarter decreased by 5.3% or MYR 22 million and full year profit of MYR 1.36 billion, representing a decline of 4.5% or MYR 87.1 million. 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. And this impact is partly cushioned by higher other income, which includes the one-off income received arising from settlement with our 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 MYR 19.8 billion was higher by 5.6% or MYR 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 growth projects, namely the fiber optic infrastructure project, the 120-megawatt power plant in Labuan, LNG storage tank project in Pengerang as mentioned by Aziz earlier. It's a good CapEx spending during the year for PGB Group of companies. Meanwhile, total liabilities increased by 13.1% or MYR 590.4 million 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 a healthy level, enabling dividends to be sustained and underpinned by our robust earnings and disciplined capital management. As mentioned earlier, the Board has approved the fourth interim dividend of MYR 0.22 per ordinary share payable on 24th of March 2026, amounting to MYR 435.3 million for the financial year ending 31st December 2025. This demonstrates our commitment to ensure sustained level of returns to the shareholders despite the business operating conditions. That is all for me. Next, Wan Khairul will share with all of us on the recently announced RP3 tariff. Over to you, Wan Khairul.

Thank you, Shahrul. Good morning, everyone. I will take you through the key highlights of the newly approved Regulatory Period 3 tariff for our Gas Transportation and Regasification business. Following the government decision on RP3, PGB is expected to continue contributing positive earnings 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 costs associated with the 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 costs such as costs resulting from the new government directive and other factors 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 carryover mechanism while continuing sustainability, focused effort and support long-term operational resilience and financial sustainability. Alright, let me start with PGU. The approved base gas transportation tariff is MYR 1.196 per gigajoule per day. Additionally, a tariff of MYR 0.413 per gigajoule per day has been approved for high-pressure gas delivery to Singapore. With 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 high transportation volume, additional OpEx allowance have been approved, primarily reflecting the forecast increase in the operating costs and electricity consumption required to operate both existing and the new compressor facilities located in Kluang Johor and Jeram Selangor. As contribution -- 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 earnings from gas price volatility. Moving on to RGTSU. The government has approved the base regasification tariff of MYR 3.542 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. These investments support safe and efficient operation of RGTSU. Anchored on forward-looking assumptions, OpEx allowance have been approved to reflect higher utility costs arising from the forecast increase in sellout volume. The OPEC 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 earnings. Lastly, the government had approved a base regasification tariff for RGTP of MYR 3.142 per gigajoule per day. Similar to RGTSU, capacity utilization is also expected to maximize 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 provides for additional CapEx investment to sustain the integrity and reliability of the regasification terminal alongside routine scheduled maintenance CapEx to ensure compliance with regulatory requirements. OpEx allowance for RGTP have been approved to reflect costs associated with increased [indiscernible] volume, ensuring that efficient operating costs 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 earnings. That's conclude my sharing. I now hand over back to Mr. Aziz.

Thank you, Juan Pedro. So with that briefing, I hope we have given you better clarity on RP3, which is going to be in effect for the next 3 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. [indiscernible] Hula, we remain well positioned to sustain a healthy and stable performance throughout 2026, '25 and '26, underpinned by resilient operations and disciplined execution. Now I'll touch on [indiscernible]. So following the [indiscernible] 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 3 2026, and this will strengthen our end-to-end operational visibility, performance monitoring and control across our operations. Internal [indiscernible] 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 is 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 method, including potential gasification infrastructure and power plants. Now beyond our core businesses, there are selectively pursuing adjacent and step [indiscernible] fiber network that we are building is an example of adjacent and step-up opportunity by leveraging on our existing assets in the case of [indiscernible] projects, leveraging on the right [indiscernible] that we have [indiscernible] 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 -- thank you.

[Foreign Language]. [Operator Instructions]. There is a first question here. [Operator Instructions] yes, I will have first question from [ Isaac ].

I have 3 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 from the gas transport segment? Question number 2 is that how much is the CapEx under the RP3 and how does it compare to RP2? And the last question is that can you remind us what is the volume -- reserve volume for the gas transportation under the RP2 again? Three questions.

Thank you, Isaac. I think on the maintenance outlook, you should look at the full year to look at what is the trend rather than quarter-by-quarter. Sometimes, as you know, there are constraints within a certain quarter, leading to lower spending or sometimes turnaround, we have in different quarters, so the spending is higher. So you should look at year -- full year numbers as a guide, yes. RP3 versus RP2, I think 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. But in general, of course, some are higher, some are lower. But in general, for us, there is an average increase [indiscernible] -- you mean the capacity probably. The shipper continue to reserve the same capacity as per RP2. Because remember, RP period is a decision by government when it comes to tariff and the IBR regime, but 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, we are looking at mid-2030s and the Regas mid-2030s and one of the Regas probably until 2040. Okay. Isaac.

Sorry, I just want to just summarize this in a bit. So can I assume that the -- 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?

Yes, yes. Remember that under the IBR, the basis is the middle year of the RP2. So whatever the numbers will be captured and then will be reflected in the new RP. And as far as CapEx, once we spend, it will be translated into the RAB.

[indiscernible].

A couple of questions from me. Firstly, I just want to go back to the question on the maintenance cost, high maintenance cost for gas transportation in the fourth quarter. You mentioned preventive maintenance and undertaking some measures, right, to address emerging operational risk. Can I understand whether this is related still to the [indiscernible] incident? Or is that -- is the maintenance measures that you took, right? Was it related to something else? And was it a planned maintenance? Or was it an unpredicted or unplanned maintenance? That's question number one. And 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 cost 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? And thirdly, in terms of the regulated return for RP3, I'm not sure whether you share this number. If you could, yes, it will 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? Those are my questions.

Thank you, [ Fong ]. Okay. For the maintenance costs for fourth quarter related to [indiscernible] is actually cover both the normal maintenance as well as if you keep on reading on the ultrahigh incident, owing to new risk that we have learned from the incident, we did some spending to take into [indiscernible] of the new risk. So to answer your question, the maintenance cost is actually covering both normal and some portion dedicated to ultrahigh enhancement. Now the second question on earnings, RP3, yes, the earning is comparable to RP2 -- mentioned, still going to give us positive impact to the company. Regulated return, we did not -- 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 infrastructure, utility infrastructure business, regulated business.

Okay. And if I can just quickly follow up, right, on the gas transportation earnings outlook under RP3. Is that -- can you guide us a little bit on what you expect in terms of the EBITDA or EBIT margin for gas transportation in FY '26? And also just going back to the -- what you mentioned just now, right, about the maintenance cost having 2 parts to it, right? And the second part, which is, I think, a little bit less of a planned maintenance related to more to the [indiscernible] incident. Is that going to be compensated to -- back to PETRONAS Gas from the IBR framework?

Yes, some -- okay, question. I take the second question first. Yes, as [indiscernible] mentioned, in the new regime, there will be unpredictable OpEx and CapEx. So 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, yes. So 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.

Next one, we have on the line is Daniel.

[indiscernible] hear me.

Yes, Daniel.

Okay. I just want to kind of sum up just now the questions. Okay. 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 [indiscernible] 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 4 is not only at PGU, but also at other assets. So the higher is across all the assets. But whatever the CapEx that we spend on PGU, it is not in RP2, not in RP3, then there is always the unpredictable CapEx and OpEx provision that we will be talking to [indiscernible].

So that means the new tariff under the RP3 has already taken into account of whatever being spent for the fourth quarter of '26 [indiscernible].

For the plan one.

For the unplanned under the RP2 under for this [indiscernible] preventive measures that was being done on the fourth quarter. This is considered unpredict right? So this one will be considered under RP3.

Yes. Under the provision of unpredictable. What I can say the big chunk is still under RP2 budget.

Good chance under RP2. All right. Again check if you do numbers right, can we easily assume that in the fourth quarter, this additional chunk of OpEx or this easily could come up to 60 million to 70 million additional compared to the 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 full year. Again, our maintenance activities has many factors. Sometimes weather also will impact our maintenance activities. But what we plan for the full year is a better guidance for you.

What we are looking at your quarterly numbers seems to be stable on the first 9 months, just your fourth quarter everything up, but we don't see substantial things that have changed -- environment have changed.

Okay. Maybe my CFO also.

I may help, I think they are both planned and unplanned maintenance activities undertaken in quarter 4 and I think your question in particular for gas transportation. So I think the plan one is sometime during the year [indiscernible], but it's a planned activities. It can happen in any of the quarter, that is being planned in early quarter, but the discussion is a bit later depending on the situation at the plant, there's a window for us to undertake the maintenance activities. And I think a certain portion of what happened is what we call is one-off or is unplanned and that was not expected to happen in every quarter 4, that may help, Daniel.

How much is this unplanned CapEx -- so OpEx being spent in the fourth quarter?

I think around MYR 15 million or so for quarter 4.

Okay. Okay. My second question is on the PETRONAS and [indiscernible] Gas processing incentive for the year, how much do you recognize for this year? Last year was around MYR 150 million, I remember. This year, how much was it?

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

MYR 150 million.