New tariff a bane for Gas Malaysia margins?

A worker unloads an empty Petronas gas cylinder at a shop in Ampang, in the suburbs of Kuala Lumpur on November 14, 2013. Malaysian state energy firm Petronas said on November 12 its third-quarter net profit rebounded, rising 19.5 percent year-on-year due to higher sales of crude oil and other products. AFP PHOTO / MOHD RASFAN

A potential squeeze on its margins from the recent hike in gas tariffs may unsettle investors of Gas Malaysia Bhd, at least until it clears the air.

In the meantime, analysts have had to do a bit of guesswork on whether the higher gas prices will work in Gas Malaysia’s favour.