Gas Malaysia Bhd Earnings Hit by Lower Natural Gas Prices
Gas Malaysia Bhd is expected to report a decline in its first-half net profit due to lower natural gas prices. According to UOB Kay Hian Research, the company's Q2 2026 earnings will be affected by this trend.
The research firm estimates that natural gas prices will range between RM45 and RM50 per million British thermal units (mbtu) in Q4 2026, a significant increase from the current estimate of RM34 per mbtu for the first nine months of the year. This suggests a potential rebound in the company's earnings towards the end of 2026.
UOB Kay Hian Research attributes the decrease in natural gas prices to the sharp spike in oil prices, which has led to lower demand and subsequently reduced prices. However, they predict that Middle East conflict will drive up natural gas prices from Q4 2026 onwards, resulting in higher earnings for Gas Malaysia Bhd.