Gas Malaysia posts 21% profit increase in 3Q20

For the current YTD period, the group has proposed a dividend per share of 4.25 sen

by NUR HAZIQAH A MALEK / pic credit:

NATURAL gas distribution company Gas Malaysia Bhd posted a net profit of RM50.91 million for the third quarter ended Sept 30, 2020 (3Q20), up 21.2% from the same quarter a year before, due to increase in volume of natural gas sold and higher gas contribution margin.

In an exchange filing yesterday, the company said its revenue saw a marginal 1.9% dip to RM1.72 billion from RM1.75 billion, attributed to lower average natural gas tariff despite a higher volume of natural gas sold.

For the year-to-date (YTD) performance, it posted a net profit of RM143.4 million in the first nine months, up 8.5% from RM132.18 million for the same period in the previous year.

For the same period, Gas Malaysia revenue achieved RM4.87 billion, down 6.5% from the year before at RM5.21 billion.

Gas Malaysia noted that the widespread of Covid-19 since the beginning of 2020, coupled with various government measures to contain the coronavirus pandemic, has posed a challenge to all industries, some of which were its customers.

“While the group’s customers are able to fully resume their operation under the Recovery Movement Control Order effective from June 19, 2020, the group’s financial performance for the financial year ending Dec 31, 2020, will be affected by the duration and the extent of the economic stimulus packages given and offered by the government during the pandemic, coupled with the pace of economic recovery in Malaysia and globally,” it said.

For the current YTD period, the group has proposed a dividend per share of 4.25 sen compared to 4.8 sen last year.

Gas Malaysia is in the business of powering homes and businesses with innovative energy solutions that are cost-efficient and environmentally friendly.

It aims to provide clean, efficient and stable supply of natural gas and liquefied petroleum gas to homes, commercial businesses and industries.

Its energy solutions include power generation system with heat recovery such as combined heat and power, and alternative gas distribution such as virtual pipeline.

Its share yesterday closed unchanged at RM2.72.