Gas Malaysia lowers average natural gas selling price for 1Q

The selling price revision will continue to contribute positively towards the financial position of the company for FY21

by S BIRRUNTHA / source: Gas Malaysia

GAS Malaysia Bhd has fixed the average natural gas selling price for the distribution segment of its unit Gas Malaysia Energy and Services Sdn Bhd at RM22.14 per million British thermal units (mmBtu) for the first quarter of 2021 (1Q21).

In a filing to Bursa Malaysia yesterday, the company stated that the price is lower by 34.21% or RM11.51 per mmBtu compared to the average natural gas selling price in 2020.

“The new average natural gas selling price includes the transportation tariff of RM1.19 per mmBtu, the legacy gas cost pass-through of 62 sen per mmBtu and distribution tariff of RM1.88 per mmBtu as previously approved by the Energy Commission,” it stated.

Gas Malaysia noted that the selling price revision is not applicable to the sales of natural gas for natural gas vehicles and liquefied petroleum gas (LPG) supplied in gas cylinders or in bulk.

“The selling price revision will continue to contribute positively towards the financial position of the company for the financial year ending Dec 31, 2021 (FY21),” the group said.

For its 3Q20, Gas Malaysia posted a 21% increase in its net profit to RM50.91 million from RM42 million a year ago contributed by a higher volume of natural gas sold.

Its revenue for the quarter, however, was down marginally by 2% to RM1.72 billion from RM1.76 billion due to lower average natural gas tariff.

The group’s net profit for the cumulative nine-month period stood at RM143.39 million, up 8.5% from RM132.18 million a year ago despite posting a lower revenue of RM4.87 billion for the period from RM5.21 billion previously.

The group said the higher volume sold, as well as higher finance income and share of profits from joint-venture companies contributed to the profit growth, although it was diluted by higher overheads and depreciation.

At close yesterday, Gas Malaysia’s share price ended 0.38% or one sen higher at RM2.66, valuing the company at RM3.42 billion.