Gas Malaysia Rebounds on Brent Crude Price Volatility
Kuala Lumpur (Aug 7): Gas Malaysia Bhd (KL:GASMSIA) is back in the spotlight as Brent crude oil price volatility resurfaces, affecting natural gas supplier's costs. According to Maybank Investment Bank (Maybank IB), the earnings boost from the March 2026 crude oil price rally will be reflected in Gas Malaysia's 4Q2026 financials.
Maybank IB predicts that gas costs for the second quarter of 2026 (2Q2026) will fall by 17% year-on-year and 3% quarter-on-quarter. However, it expects average domestic gas prices to drop by only 2% year-on-year in 2026.
The research house maintained its 'hold' rating on Gas Malaysia's stock but lowered its discounted cash flow-based target price to RM5.00 from RM5.50 per share due to assumed lower gas prices. Maybank IB noted that further upside is contingent upon domestic gas prices staying higher for longer.