Gas Malaysia Bhd Faces 10% Net Profit Decline Due to Lower Natural Gas Prices

Gas Malaysia Bhd is expected to see its first-half net profit decline by 10% year-on-year due to lower natural gas prices. The company's second quarter of 2026 is likely to be weaker, according to UOB Kay Hian Research.

The sharp spike in oil prices has led to a decrease in natural gas prices, which are estimated to hit between RM45 and RM50 per million British thermal units (mbtu) by the end of the year. In comparison, the first nine months of this year saw an estimated price of NG of RM34 per mbtu.

However, UOB Kay Hian Research predicts that the Middle East conflict will lead to higher natural gas prices from 4Q26 onwards, suggesting a strong finish for 2026 and spillover of higher NG prices into 2027.