Commodities
Gas Malaysia to Ride Higher Oil Prices to Earnings Growth
Gas Malaysia Bhd is poised to see its earnings rise by 16% in financial year 2027 due to higher gas prices linked to last year's crude oil spikes and a rebound in volume, according to RHB Research.
The research house notes that Gas Malaysia benefits from elevated crude oil prices as its shipper subsidiary earns a fixed margin on the Malaysia Reference Price (MRP), which tracks Brent crude oil prices with a nine-month lag.
RHB Research forecasts MRP to increase 28% year-on-year in 2027, reflecting the 21% increase in Brent crude oil prices this year, before falling 11% in 2028 on moderating oil prices.