Gas Malaysia Bhd’s net profit dropped 8.88% to RM97.81 million in the second quarter ended June 30, 2023 (2QFY2023), from RM107.34 million in the corresponding quarter a year before on higher cost of sales and administrative expenses.

KUALA LUMPUR (Aug 21): Gas Malaysia Bhd’s net profit dropped 8.88% to RM97.81 million in the second quarter ended June 30, 2023 (2QFY2023), from RM107.34 million in the corresponding quarter a year before, as cost of sales and administrative expenses increased, while contributions from the group’s joint venture (JV) companies dropped. Earnings per share lowered to 7.62 sen from 8.36 sen.

The group's cost of sales grew to RM1.87 billion from RM1.62 billion, while administrative expenses increased to RM21.01 million from RM16.96 million and its share of results from JVs posted a loss of RM1.26 million, versus a profit of RM890,000 previously, its bourse filing on Monday (Aug 21) showed.

The weaker profitability was partially offset by higher finance income and revenue during the quarter. Finance income jumped to RM4.52 million from RM2.49 million, while revenue rose to RM2.02 billion from RM1.78 billion previously, lifted by higher average natural gas selling price but mitigated by a lower volume of natural gas sold.

The group declared a first interim dividend of 5.72 sen per share — lower compared to the 5.9 sen it paid in the same quarter last year — payable on Oct 27, 2023.

For the first six months of FY2023 (6MFY2023), its net profit dipped 2.89% to RM192.91 million from RM198.66 million in 6MFY2022, despite revenue rising 25.25% to RM4.46 billion from RM3.56 billion a year ago on higher average natural gas selling price, as cost of sales also jumped almost in tandem to RM4.16 billion, up 27.22% from RM3.27 billion previously.

Moving forward, Gas Malaysia said it will continue to take prudent measures to maintain its operational efficiency to remain competitive and seek opportunities to grow its business, adding its board expects to deliver a satisfactory performance for the financial year 2023.

Gas Malaysia's share price closed one sen or 0.33% higher at RM3.02 on Monday, valuing the group at RM3.88 billion. Over the past 12 months, the stock has dropped over 11% from RM3.41.