Gas Malaysia May Report Weak Q2 Earnings Amid Delayed Price Boost

Gas Malaysia Bhd (KL:GASMSIA) may report weaker second-quarter earnings due to lower natural gas prices, higher overheads, and marginally lower returns on regulated assets, according to an analyst. The company is expected to release its Q2 results in August.

The research house UOB Kay Hian predicted a 10% decline in January-June earnings compared to the first half of 2025. This weakness is attributed to the delay in capturing higher natural gas prices, which will only be reflected in the fourth quarter and beyond.

Gas Malaysia's domestic natural gas sales are tied to the Malaysia Reference Price, which lags behind Brent crude oil prices by about six months. Brent has surged nearly 20% in the first half of 2026 amid the US-Iran war, while liquefied natural gas prices in Asia have risen 67% over the same period.

UOB Kay Hian estimates that natural gas prices will jump to as high as RM50 per metric million British thermal unit in the fourth quarter from RM34 in the first nine months of 2026. This increase will likely boost Gas Malaysia's earnings in the latter half of 2026 and potentially spill over into 2027.