Gas Malaysia Sees Lower Profit Amid Weaker NG Prices

Gas Malaysia Bhd is expected to see its first-half net profit fall by 10% year-on-year, due in part to lower natural gas prices. According to UOB Kay Hian (UOBKH) Research, these prices will likely hit between RM45 and RM50 per million British thermal units (mbtu), down from an estimated price of RM34 per mbtu for the first nine months of this year.

This decline is attributed to a sharp spike in oil prices. However, UOBKH Research predicts that NG prices will rise due to the Middle East conflict, which is expected to lead to higher NG prices from 4Q26 onwards.

The research house estimates that a 1% change in NG prices can swing Gas Malaysia's net profit by 4%. It also notes that other factors contributing to lower earnings include higher staff and administrative costs, as well as marginally lower returns on regulated assets.