Gas Malaysia's profit jumps in 2Q on higher volume of natural gas sold

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KUALA LUMPUR (Aug 8): Gas Malaysia Bhd reported a 42% jump in its net profit for the second quarter ended June 30, 2018 (2QFY18), to RM48.07 million from RM33.76 million in the year-ago quarter, mainly due to higher gross profit which is in line with the increase in volume of natural gas sold and partly offset by higher operating expenses.

Earnings per share for 2QFY18 rose to 3.74 sen from 2.63 sen a year ago. The group's quarterly revenue was up 17% to RM1.5 billion from RM1.28 billion previously.

It declared a first interim dividend of 4.5 sen for the quarter, to be paid on Sept 26, its stock exchange filing today showed.

For the cumulative first half ended June 30 (1HFY18), Gas Malaysia reported a 33% rise in net profit to RM88.29 million from RM66.19 million a year ago, due to higher gross profit which is in line with the increase in volume of natural gas sold and partly offsetted by higher operating expenses.

Revenue was up 19.1% to RM2.94 billion from RM2.47 billion due to the higher natural gas tariff and higher volume of natural gas sold.

Gas Malaysia's board anticipates that it will be able to sustain its yearly growth in terms of sale of natural gas and customer base for FY18.

“The profitability of the group for FY18 is expected to be in tandem with the level reflecting the prevailing tariff setting mechanism framework,” it said.

Gas Malaysia shares slid 3 sen or 1% today to settle at RM2.93, for a market capitalisation of RM3.76 billion.