Gas Malaysia Up On Higher FY2024 Net Profit

KUALA LUMPUR, Feb 19 (Bernama) -- Gas Malaysia Bhd’s shares on Bursa Malaysia rose in the morning session after it posted a higher net profit for the financial year ended Dec 31, 2024 (FY2024).

At 11.55 am, the counter added four sen to RM4.22, with 388,300 shares transacted.

Gas Malaysia recorded a surge in its FY2024 profit to RM441.39 million from RM383.40 million in FY2023, attributed to the higher volume of natural gas sold and higher average natural gas contribution margin.

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However, revenue slid to RM8.04 billion in FY2024 from RM8.08 billion previously, due to a lower average natural gas selling price, but mitigated by a higher volume of natural gas sold and higher “tolling fee,” the company said in a filing with Bursa Malaysia yesterday.

MIDF Investment Bank Bhd said it has maintained its FY2025 earnings forecast on Gas Malaysia, in consideration that the FY2024 earnings came within expectation. “However, we revised our FY2026-2027 earnings estimates downward by 1 per cent each to accommodate FY2024 results. This could be tweaked further post the group’s upcoming results briefing,” it said in a note today.

It has also revised the company’s target price to RM4.57 from RM4.09 and kept a “buy” call on Gas Malaysia.

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Meanwhile, Kenanga Investment Bank Bhd said it has maintained Gas Malaysia’s FY2025 net profit forecast at RM405.4 million, suggesting an eight per cent year-on-year decline. The investment bank expects margin spread to compress in contract renewals with clients, effective from January 2025, while anticipating sales volume to remain at 166.9 million.

“We also introduce a new FY2026 net profit estimate with earnings to grow 1.2 per cent with an unchanged margin spread and demand growth of three per cent. Our dividend projection is based on 80 per cent earnings payout,” it said in a note. 

-- BERNAMA