Gas Malaysia’s net profit up 19.5% in 4Q20

By SHAHEERA AZNAM SHAH / Source pic Gas Malaysia

GAS Malaysia Bhd’s net profit for its fourth quarter ended December 2020 (4Q20) rose 19.51% year-on-year (YoY) to RM69.23 million largely contributed by the higher volume of natural gas sold, coupled with the revenue cap adjustment recognised during the quarter.

Its revenue in the period rose 8.38% to RM1.82 billion from RM1.68 recorded in a similar quarter in 2019. Its earnings per share (EPS) stood at 5.39 sen compared to 4.51 sen.

“The profit before zakat and tax-action (PBZT) for Gas Malaysia’s 4Q20 was RM94.4 million, an increase of 38.4% compared to RM68.2 million in the corresponding period last year.

“This was mainly due to higher gross profit in line with the higher volume of natural gas sold and the recognition of revenue cap adjustment in the current quarter, offset by higher overheads and depreciation being part of the cost of sales.

“The higher finance income and operating income also contributed to the increase in PBZT,” it told Bursa Malaysia last Friday.

However, Gas Malaysia said the higher earnings and revenue were partially offset by the higher operating expenses, as well as lower contribution from the group’s joint ventures.

For the group’s financial year 2020 (FY20), its net profit rose 11.85% to RM212.6 million from RM190.11 million in 2019.

However, its revenue for the year declined by 2.9% to RM6.69 billion compared to RM6.89 billion in the previous year.

The basic EPS for the year stood at 16.56 sen compared to 14.81 sen.

PBZT for FY20 was RM290.8 million, an increase of 20.1% compared to RM242.1 million in the corresponding year.

“This was mainly due to higher gross profit in line with the recognition of revenue cap adjustment in the current year, despite the slightly lower volume of natural gas sold and higher overheads and depreciation.

“The higher finance income and higher operating income also contributed to the increase in PBZT,” Gas Malaysia said.

Moving forward, the group anticipates its FY21 to remain challenging due to the reimplementation of lockdown in certain areas where some of the group’s customers operate.

“Revenue for the FY20 compared to FY19 was impacted by the lower volume of natural gas consumed by the group’s customers as a consequence of the series of Movement Control Order imposed by the government in a bid to contain the spread of Covid-19.

“Nonetheless, the group will continue to be vigilant and take appropriate and timely measures to sustain its profitability for FY21,” it said.

The group declared a second interim dividend of 5.4 sen per share on the 1.28 billion ordinary shares amounting to RM69.34 million for FY20, to be paid on March 31, 2021.

Read our earlier report

Gas Malaysia sees higher profit in 4Q20