High JV contribution lifts Gas Malaysia’s 4Q profit, 4.8 sen dividend declared

KUALA LUMPUR (Feb 13): Gas Malaysia Bhd closed its fourth quarter with a net profit of RM57.93 million, up 13.41% from RM51.08 million the year before, thanks to higher share of results from its joint ventures.

The share of results for the quarter ended Dec 31, 2019 jumped by RM22 million to RM22.71 million, from RM727,000 previously.

Earnings per share rose to 4.51 sen, from 3.98 sen a year earlier, Gas Malaysia said in a filing today.

The group announced a second interim dividend of RM61.63 million or 4.8 sen per share, higher than the 4.5 sen in the same period last year.

The higher net profit came despite a lower gross profit in the quarter, dragged by adjustments made under the gas cost pass through mechanism, which was partially offset by higher natural gas tariff which took effect last July.

Revenue was also affected for the same reason and came in 3.47% lower at RM1.68 billion, from RM1.74 billion last year.

For the full financial year, Gas Malaysia’s net profit rose 5.38% to RM190.11 million from RM180.39 million in FY18, supported by higher JV contribution which more than offset the lower gross profit and higher expenses. Full-year revenue rose 10.48% to RM6.89 billion from RM6.23 billion previously.

Gas Malaysia noted that FY19’s better performance was primarily driven by higher volume of gas sold and the tariff revision.

“The board anticipates that the yearly increase in natural gas sale volume and number of customers will sustain for FY20,” it said.

Shares of Gas Malaysia closed unchanged at RM2.82, giving the group a market capitalisation of RM3.62 billion.