Gas Malaysia Falls In Early Trade On Lower 3Q Profits

KUALA LUMPUR, Nov 21 (Bernama) -- Share prices of Gas Malaysia Bhd fell in early trade on Friday after the company reported a decline in net profit and revenue for the third quarter (3Q) ended Sept 30, 2025, citing lower natural gas sales volumes and reduced average profit margins.

Weaker earnings were also driven by higher administrative expenses, rising finance costs, and a smaller contribution from joint ventures.

At 10.35 am, Gas Malaysia was down five sen at RM4.39, with 115,600 shares traded.

Kenanga Investment Bank Bhd said sales volumes, which dipped slightly in the second quarter due to a temporary gas curtailment following the Putra Heights fire, began recovering in the third quarter and are expected to continue rising in the fourth quarter.

“Narrower margin spreads from contract renewals in January 2025 could weigh on profitability. Nonetheless, normalised gas volumes in the second half of 2025 should support its attractive dividend yield,” the investment bank said.

The bank also raised its terminal growth rate assumption for Gas Malaysia to 2.5 per cent from 2.0 per cent, citing expectations of strong gas demand growth by 2030.

“We like Gas Malaysia for its strong market position as a key natural gas retailer in Malaysia, robust earnings visibility underpinned by three-year customer contracts, and strong free cash flow generation, supporting a dividend yield of more than 5.0 per cent. However, we believe these positives are already reflected in the share price and thus maintain our market perform rating,” it added.

-- BERNAMA