Gas Malaysia to Reap Benefits of Higher Gas Prices in 2027

Gas Malaysia Bhd is expected to see a significant boost in earnings due to higher gas prices linked to last year's crude oil spikes. According to RHB Research, Gas Malaysia benefits from elevated crude oil prices because its shipper subsidiary, Gas Malaysia Energy and Services, earns a fixed margin on the Malaysia Reference Price (MRP), which tracks Brent crude oil prices with a nine-month lag.

The research firm projects that MRP will increase by 28% year-on-year in 2027 to reflect the 21% increase in Brent crude oil prices this year. However, it expects oil prices to moderate in 2028, leading to an 11% drop in MRP.

RHB Research forecasts Gas Malaysia's earnings to grow 16% in the financial year 2027 (FY27) and 4% in FY26, despite regulated tariffs mitigating lower volume and MRP.