GAS MALAYSIA BERHAD: Financial Performance and Strategic Initiatives

Financial Performance in 1QFY2025

Gas Malaysia Berhad (KL:GASMSIA), a leading Malaysian company in the production and distribution of natural gas, reported a slight decline in its financial performance for the first quarter of 2025 (1QFY2025). The company’s net profit decreased by 2.4% to RM100.14 million from RM102.63 million in the same period the previous year. This reduction was attributed to a lower average natural gas contribution margin, increased administrative expenses, and higher finance costs. Despite these challenges, the decline was partially offset by a higher volume of natural gas sold and an increased share of results from joint venture companies.

Revenue for the quarter also saw a decrease of 1.5%, falling to RM1.84 billion from RM1.87 billion in 1QFY2024. This was primarily due to a lower average natural gas selling price, although this was mitigated by the higher volume of natural gas sold and an increased tolling fee. The earnings per share for the quarter were 7.8 sen, down from 7.99 sen in 1QFY2024.

Strategic Initiatives and Commitment to Growth

Despite the financial headwinds, Gas Malaysia remains committed to enhancing operational efficiency and sustaining competitiveness. The company is actively pursuing strategic growth opportunities, including the implementation of prudent measures to improve its financial performance. The board is confident that these initiatives will position the company to deliver satisfactory performance for the financial year 2025, while maintaining a cautious outlook in light of ongoing market conditions.

Innovation in Renewable Energy

In a significant strategic move, Gas Malaysia Berhad has launched Malaysia’s first centralised biomethane injection station, developed through its wholly owned subsidiary Gas Malaysia Green Ventures Sdn Bhd (GMGV). This facility, expected to begin operations in the second half of 2025, marks a landmark effort to drive the growth of renewable energy in the country. The initiative aligns with the company’s strong commitment to supporting the national green energy agenda, focusing on reducing carbon emissions and facilitating the transition to cleaner energy across multiple industries.

Chairman Tan Sri Wan Zulkiflee Wan Ariffin emphasized that biomethane initiatives will remain a strategic pillar in the company’s pursuit of sustainable energy solutions and long-term growth. The government’s support has been instrumental in this endeavor, highlighting the collaborative effort to advance Malaysia’s renewable energy capabilities.

Market Position and Outlook

As of May 18, 2025, Gas Malaysia Berhad’s close price was MYR 4.15, with a 52-week high of MYR 4.55 and a low of MYR 3.42. The company’s market capitalization stands at MYR 5,302,920,000, with a price-to-earnings ratio of 12.01. These fundamentals reflect the company’s robust market position and its potential for future growth, particularly as it continues to innovate and expand its renewable energy portfolio.

In summary, while Gas Malaysia Berhad faced some financial challenges in 1QFY2025, its strategic initiatives and commitment to renewable energy innovation position it well for future growth and sustainability. The company’s efforts to enhance operational efficiency and pursue strategic growth opportunities are expected to drive its performance in the coming years.