Gas Malaysia off to positive start in 2019

This article first appeared in The Edge Financial Daily, on May 16, 2019.
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KUALA LUMPUR: Gas Malaysia Bhd, a member of MMC Group, saw its net profit rise 2.4% to RM41.17 million in the first quarter ended March 31, 2019 (1QFY19) from RM40.21 million a year ago, on higher other operating income, share of profit of joint ventures and lower operating expenses.

The gain was offset by a slight decline in gross profit, which resulted from higher other cost of sales recognised during the current quarter under review.

This resulted in Gas Malaysia posting a higher earnings per share of 3.2 sen for 1QFY19 compared with 3.13 sen for 1QFY18.

Quarterly revenue also grew 19.5% to RM1.72 billion from RM1.44 billion in 1QFY18.

In a filing with Bursa Malaysia yesterday, Gas Malaysia said the growth in revenue for the quarter was primarily driven by the increase in volume of natural gas sold and revision in gas tariff.

“The board of directors anticipates that the yearly increase in natural gas sale volume and number of customers will sustain for FY19. The profitability of the group for FY19 is expected to be in tandem with the level reflecting the prevailing tariff setting mechanism framework,” it added.

Gas Malaysia shares closed three sen or 1.05% higher at RM2.89 yesterday, with a market capitalisation of RM3.71 billion.