Gas Malaysia Back in Focus as Brent Crude Volatility Returns
Kuala Lumpur-based Gas Malaysia Bhd (KL:GASMSIA) is back in focus as Brent crude price volatility resurfaces, according to Maybank Investment Bank (Maybank IB).
The natural gas supplier's gas costs track Brent prices with an approximate eight-month lag.
Maybank IB notes that the earnings boost from the March 2026 crude oil price rally will be reflected in Gas Malaysia’s fourth-quarter 2026 financials.
The investment bank predicts a 17% year-on-year decrease and 3% quarter-on-quarter drop in gas costs for the second quarter of 2026, while average domestic gas prices are expected to fall by 2% year-over-year.
In response, Maybank IB has lowered its discounted cash flow-based target price for Gas Malaysia's stock to RM5.00 from RM5.50 per share and maintained its 'hold' rating.