Gas Malaysia extends ROE winning streak to eight years with expansion plans

Gas Malaysia Bhd has extended its winning streak to eight consecutive years, maintaining industry-leading returns on equity (ROE) despite a challenging economic backdrop. The company recently won The Edge Billion Ringgit Club (BRC) award for the Highest ROE in the utilities sector for the eighth year in a row, with an adjusted weighted ROE of 27.5% from FY2023 to FY2025. Its annual ROE stood at 29% in FY2023, 30.7% in FY2024, and 24.9% in FY2025.

Despite a 13.5% decline in net profit to RM381.7 million in FY2025 due to softer natural gas demand, Gas Malaysia rewarded shareholders with a dividend of 23.8 sen per share, marking its fourth straight year of dividends exceeding 20 sen. The company’s expansion into regasification infrastructure highlights its long-term growth strategy, as it plans to develop a liquefied natural gas (LNG) regasification terminal in Yan, Kedah, in partnership with Tokyo Gas Co Ltd and VTTI BV.

The RM3 billion project, with a capacity of up to six million tonnes per annum, is expected to strengthen Gas Malaysia’s position as a major gas infrastructure player. The company’s share price rose to as high as RM6 as of March 31, 2026, reflecting a three-year compound annual growth rate of 32.4%. Gas Malaysia also expanded its Natural Gas Distribution System network by 153km in 2025, serving over 1,000 industrial customers.

Looking ahead, Gas Malaysia aims to grow its distribution network by 30% to 4,000km by 2032 while exploring low-carbon gas production and supporting the chemicals and advanced materials segments. The company’s strategic plan, GM32, underscores its commitment to balancing core business growth with new opportunities in a rapidly changing industry landscape.