The group expects to deliver a satisfactory performance for FY25.
PETALING JAYA: Gas Malaysia Bhd
saw a 15% year-on-year (y-o-y) increase in its net profit for the financial year ended Dec 31, 2024 (FY24), due to higher volume of natural gas sold, higher average natural gas contribution margin as well as higher tolling fee.
The group posted FY24 net earnings of RM441.4mil, translating to an earnings per share of 34.38 sen.
Revenue was down by 0.4% y-o-y to RM8bil mainly due to lower average natural gas selling price, mitigated by higher volume of natural gas sold and higher tolling fee.
In a filing with Bursa Malaysia, the natural gas supplier added the better earnings were also partially offset by higher administrative expenses.
For the fourth quarter ended Dec 31, 2024 (4Q24), Gas Malaysia’s net profit rose by 8% y-o-y to RM112.7mil, translating to an earnings per share of 8.78 sen.
This was mainly driven by higher volume of natural gas sold, higher average natural gas contribution margin and higher tolling fee, partially offset by higher administrative expenses.
On top of that, the group’s revenue in 4Q24 was up by 14% y-o-y to RM2.1bil due to higher volume of natural gas sold and higher average natural gas selling price and higher tolling fee.
Going forward, Gas Malaysia said it remains dedicated to implementing prudent measures aimed at enhancing operational efficiency, maintaining competitiveness and exploring opportunities for business expansion.
The group expects to deliver a satisfactory performance for FY25 with those strategies in place, while maintaining a cautious outlook given potential market uncertainties.
Gas Malaysia had declared on Feb 18, 2025, a second interim dividend of 9.60 sen per share on the 1,284,000,000 ordinary shares, amounting to RM123.3mil in respect of the financial year ended Dec 31, 2024, which will be paid on April 25, 2025.
Gas Malaysia’s earnings were in line with UOB Kay Hian (UOBKH) Research’s expectations. The research house said in a report on Monday that it expects the group to deliver another solid quarter in its upcoming 4Q24 results with a 15% y-o-y growth in net profit to RM100mil to RM120mil.
The main factors driving UOBKH Research’s positive view was the 10% natural gas volume growth, positive operating leverage and healthy Gas Malaysia energy and services retail margin.
Just a day before Gas Malaysia announced its results, UOBKH Research had downgraded its call for the company to a “hold” from a “buy” with a target price of RM4.40.
The research house said Gas Malaysia’s share price has appreciated 16% since UOBKH Research’s upgrade in October and it believes that strong quarterly earnings have been partly priced in.
UOBKH Research said FY25 is a crucial year for the group’s subsidiary Gas Malaysia Energy & Services as customer contracts are up for renewal.
Positively, Gas Malaysia has secured contract renewal for at least 90% of its current customer base.
