By MARK RAO / Graphic By TMR
GAS Malaysia Bhd’s fiscal performance in 2018 is expected to reflect the gas rates and prevailing tariff mechanism outlined for the year, after turning in a strong quarterly and yearly performance last year.
For the company’s fourth quarter ended Dec 31, 2017 (4Q17), the natural and liquefied petroleum gas supplier saw its net profit jump 49.2% year-on-year (YoY) to RM76.98 million, in tandem with its revenue which rose 40% to RM1.47 billion.
The growth was driven by the increase in volume of gas sold and higher natural gas tariff, while higher operating expenses were mitigated by some of the gains recognised by the group.
For the full financial year 2017 (FY17), net prof it improved 17.9% YoY to RM194.64 million while revenue increased 32.1% to RM5.35 billion.
“The board anticipates that the yearly increase in gas sales volume and number of customers will be sustained for FY18.
“The profitability of the group for FY18 is also expected to be in tandem with the level reflecting the prevailing tariff setting mechanism framework,” the company reported in its filing to Bursa Malaysia last Thursday.
Supplying gas to residential, commercial and industrial customers, Gas Malaysia said it remains “financially neutral” from gas price fluctuations arising from the Gas Cost Pass Through (GCPT) mechanism.
Implemented on Jan 1, 2016, and regulated by the country’s Energy Commission, the GCPT tariff revision is part of the government-approved Incentive Based Regulations whereby fluctuations in gas costs can be passed on via the mechanism every six months.
Effective since the start of this year, gas tariff rates is at RM23.92 per million British thermal units (MMBtu) for residential, while as high as RM33.12 per MMBtu for above a 750,000 MMBtu applicability range.
Gas Malaysia declared a second interim dividend of four sen for its 4Q17, amounting to a total RM51.36 million payout.
The company said the dividend will be paid to shareholders on March 27 this year.