Malaysia’s gas pipeline operator, Petronas Gas Bhd (PetGas), expects minimal impact to its overall operations following the April 1 pipeline fire that devastated Putra Heights, Selangor. 

According to the latest filing with Bursa Malaysia, Malaysia’s stock market, PetGas anticipates a total financial loss of 170 million Malaysian ringgit (about $40 million). 

Most of this amount will be capitalised as part of the company's capital expenditure, while some will be reimbursed under insurance, causing minimal impact on the company’s overall profitability. 

PetGas puts modest revenue loss from service interruptions at about 20 million ringgit ($4.7 million). This results from effective coordination between PetGas, the authorities, gas shippers, and distributors in pipeline services restoration and supply stabilizing. 

The net profit impact on the group for this year, taking into account repair costs and revenue loss, is now estimated at 60 million ringgit ($14 million).

The disastrous pipeline fire has prompted PetGas to focus more on strengthening risk management as well as mitigation frameworks to guarantee operational continuity and the company’s resilience.

Additionally, the company has operationalized contingency plans with stakeholders and concerned authorities to ensure gas pipeline restoration and supply stability. 

An independent task force has also been established to manage the post-incident investigation, recovery process, and safety of gas transportation facilities. PetGas is also collaborating with the government to determine the origin of the fire.

Besides this, PetGas also registered a net profit of 468.8 million ringgit ($110.5 million) for the first quarter ended March 31, an increase of 2.6% year on year. This was supported by a higher percentage of profit from joint venture companies. 

However, quarterly revenue dropped 1.5% to 1.59 billion ringgit ($375 million) due to a drop in tariffs in its gas transportation and regasification operations.