KUALA LUMPUR (May 14): Gas Malaysia Bhd’s net profit for the first quarter ended March 31, 2020 grew 16.26% to RM47.86 million from RM41.17 million a year ago, on the back of higher gas contribution and lower other cost of sales.

The stronger bottom line came despite a 6.37% decline in revenue for the quarter to RM1.61 billion from RM1.72 billion, according to its stock exchange filing with the local bourse today.

Gas Malaysia attributed the lower revenue to lower average tariff, even while it saw a higher volume of natural gas sold during the quarter.

On prospects, Gas Malaysia said the group expects the pandemic outbreak, which resulted in the nationwide enforcement of the Movement Control Order (MCO) to curb the spread of the virus, to have an adverse impact on its results for the financial year ending Dec 31, 2020.

"This (MCO) restriction prohibits all government and private premises from operating except those providing essential services. As a result, some of the group’s customers have been operating on a reduced capacity, thereby affecting the volume of gas consumed.

“However, based on the latest development, some industries have obtained approval from the government to fully resume their operations, which will spur the consumption of natural gas,” said Gas Malaysia.

The group, which has also announced the waiver of gas charges for all government hospitals in the country as well as a rebate of RM100 per customer in the low-cost residential customer category from April to September this year, said it will continue to monitor the situation and take appropriate measures to minimise any adverse financial impact to the group.

Gas Malaysia shares closed unchanged today at RM2.77, valuing the company at RM3.56 billion.