PETALING JAYA: Gas Malaysia Bhd
, which saw its earnings dip in the first quarter ended March 31, 2026 (1Q26), expects to deliver “satisfactory” performance for its financial year 2026 (FY26), while remaining mindful of prevailing uncertainties, particularly from geopolitical developments.
In its 1Q26 results filing, the group said the outlook for the Malaysian economy remains subject to downside risks, particularly from heightened geopolitical uncertainties and persistent cost pressures, which may weigh on growth momentum.
“In navigating the current operating environment, the group will prioritise operational efficiency and strengthen its competitive positioning,” it said.
Consistent with its long-term direction, Gas Malaysia said it will evaluate and selectively pursue opportunities in new business segments to support sustainable growth over the medium to long term.
It added that while these initiatives may entail additional near-term cost commitments, it remains focused on cost discipline and operational resilience.
“Against this backdrop, the board expects the group to deliver satisfactory performance for FY26, whilst remaining mindful of prevailing uncertainties,” it said.
For 1Q26, Gas Malaysia’s revenue fell 13.7% to RM1.59bil from RM1.84bil in the previous corresponding quarter.
The group, which develops, operates and maintains the natural gas distribution system in Peninsular Malaysia, primarily derives revenue from the sale of natural gas, liquefied petroleum gas (LPG), and tolling fees for the transportation of gas.
The group attributed the drop to a lower average natural gas selling price during the quarter, mitigated by higher volume of natural gas sold.
Net profit for the quarter under review declined 7.3% to RM92.84mil from RM100.14mil in 1Q25, while earnings per share eased to 7.23 sen from 7.80 sen.
Pre-tax profit for the quarter came in at RM125.9mil, down 5.3% from RM132.89mil in 1Q25. The group said the lower earnings were mainly due to reduced average natural gas contribution margin in line with lower selling prices.
However, lower finance income, weaker contributions from joint venture (JV) companies, higher administrative expenses and higher finance costs further weighed on the group’s bottom line. Still, this was partially offset by higher gas sales volume.
The group’s natural gas and LPG segment contributed the entire revenue of RM1.59bil in 1Q26, compared with RM1.84bil a year earlier.
Despite the lower revenue, pre-tax profit for the segment edged up slightly to RM132.88mil from RM132.5mil previously.
On a quarter-on-quarter basis, pre-tax profit rose slightly to RM125.9mil from RM124.2mil in 4Q25, supported mainly by lower administrative expenses.
However, this was partially offset by lower margins, lower sales volume, higher finance costs and weaker contributions from JV companies.
