KUALA LUMPUR: Gas Malaysia Bhd saw a 31.5% drop in its first-quarter net profit, mainly due to a tariff revision resulting in lower gross profit.
For the first quarter of financial year 2015 ended March (1QFY15), the group posted a net profit of RM28.49 million or 2.22 sen a share compared with RM41.61 million or 3.24 sen a share in 1QFY14. Revenue, however, rose 31.2% to RM761.58 million from RM580.57 million in 1QFY14.
In a filing with Bursa Malaysia yesterday, Gas Malaysia (fundamental: 2.1; valuation: 1.1) attributed the improved revenue to a higher volume of gas sold and the upward revision of the natural gas tariff in November last year.
“The growth in revenue for 1QFY15 was primarily driven by the increase in volume of gas sold and number of customers,” said Gas Malaysia.
“The board anticipates the increase in gas volume and number of customers to sustain in financial year 2015 ending Dec 31. The profitability of the group for FY15 is expected to be in tandem with the level reflecting the current tariff setting mechanism framework,” it said.
Gas Malaysia shares closed down 2.6% at RM2.62 yesterday, bringing a market capitalisation of RM3.36 billion.
This article first appeared in The Edge Financial Daily, on May 8, 2015.