Gas Malaysia posts RM6.9b in revenue

by NUR HANANI AZMAN/ pic credit:

AN INCREASE in gas volume sold to customers and two gas tariff revisions that were implemented in January and July 2019, continue to contribute positively towards Gas Malaysia Bhd’s financial position.

For the period under review, Gas Malaysia recorded revenue of RM6.89 billion compared to RM6.23 billion recorded in the preceding year.

Gas Malaysia, a member of MMC Corp Bhd, boasts optimism in taking advantage of the new business landscape with the reopening of economic activities beginning May 2020.

“We are encouraged by our achievements thus far, and remain confident that Gas Malaysia is determined to meet its business goals.

“It is mainly backed by solid fundamentals and supported by our committed shareholders,” Gas Malaysia CEO Ahmad Hashimi Abdul Manap said in a statement.

The board has declared a final dividend of 4.5 sen per share. Combined with the two interim dividends per share of 4.8 sen each, the total dividend per share is 14.1 sen, which is an increase from the previous year.

Ahmad Hashimi said the group carried out its business plan with undeterred perseverance, delivering on key operational aims.

“In 2019, on the back of our fundamentally strong balance sheet, we continued to expand the gas distribution pipeline by another 134km to new areas within Peninsular Malaysia, bringing the total length of the gas pipeline network in operation to 2,468km.

“Further to this, we are pleased to share that we have successfully maintained a supply reliability rate of approximately 99%.

“Supply reliability together with safety has long been our benchmark in sustaining the quality of our business operations and it has never been compromised under any circumstances,” he explained.

Meanwhile, according to its 2019 annual report, the year 2020 could translate into a trying business environment for the group.

“Depending on the post-Covid-19 impact to the business environment, we remain hopeful that there will be an increasing need for safe, clean, reliable and affordable energy moving forward.

“Over the next few years, we anticipate businesses to reassess their long-term plans and rapidly adapt to the new norm while addressing challenges ahead,” it said.

This will bring about new opportunities which eventually will translate into an encouraging demand for natural gas, to serve the needs of industries, business premises and residences respectively.

Natural gas is poised to continue to be a dominant fuel compared to other competitive alternatives in the coming years since there are strong indications that energy will continue to be a key economic driver in a nation’s success story.

“Against this encouraging backdrop, we anticipate an improved demand for natural gas, especially from the industrial sector, supported by the commercial and residential sectors.

“Equipped with a skilled talent pool, Gas Malaysia will continue to aggressively explore new opportunities and mobilise our marketing efforts to capitalise on gas demand in existing and new industrial areas,” it said.

Further to this, Gas Malaysia anticipates that the year ahead will have its fair share of challenges and equal opportunities in respect of the liberalisation of the gas market in Peninsular Malaysia.

Gas Malaysia shares slipped one sen or 0.35% last Friday to RM2.88, with a market capitalisation of RM3.7 billion.