Gas Malaysia looks to reduce opex by 10%

In 1QFY20, Gas Malaysia managed to reduce its opex by 14% y-o-y. For FY20, its management expects to reduce opex by 9-10%, MIDF Research said in a report following a post results briefing with the company.

PETALING JAYA: Gas Malaysia Bhd which has been lowering its cost to cushion the impact of the movement control order (MCO) since March is hoping to reduce operating expenditure (opex) by about 10% in FY20.

Analysts note that the gas utility company’s proactive cost management had helped cushion the MCO impact, resulting in net profit for its first quarter ended March 31 (1QFY20) increasing 16% year-on-year (y-o-y) to RM47.9mil. Its gross profit, meanwhile, rose by a quarter to RM83.9mil in 1QFY20 from RM67.3mil a year ago.