Gas Malaysia Bhd’s profit before zakat and taxation fell 23.1% to RM101.9 million for the second quarter ended June 30, 2026, from RM132.5 million a year earlier, while profit after tax drops 27% to RM72 million from RM99 million mainly due to lower natural gas selling prices and higher operating and financing costs.
Revenue for the quarter declined 12.1% to RM1.58 billion from RM1.80 billion previously, despite higher natural gas sales volume.
The group said the lower revenue was primarily attributable to a decline in the average natural gas selling price, which was partly offset by higher sales volume.
The weaker quarterly profitability was also affected by a lower average natural gas contribution margin arising from the lower selling price, as well as higher operating expenses and finance costs.
For the six-month period ended June 30, 2026, Gas Malaysia’s revenue fell 12.9% to RM3.18 billion from RM3.65 billion in the corresponding period last year.
Profit before zakat and taxation for the period declined 14.2% to RM227.8 million, compared with RM265.3 million previously.
The group attributed the six-month earnings decline to lower average natural gas contribution margins following lower selling prices, alongside lower finance income and share of results from joint venture companies.
Higher operating and administrative expenses, as well as finance costs, also weighed on profitability.
These factors were partially mitigated by higher natural gas sales volume.
The results highlight the pressure facing Gas Malaysia’s earnings from movements in natural gas selling prices, even as demand and sales volumes remain supportive.
The company’s latest performance comes as Malaysia’s natural gas market continues to adjust to changes in gas pricing and operating costs, with selling price movements having a direct impact on the group’s contribution margins.
