KUALA LUMPUR: Gas Malaysia Bhd’s (GMB) financial year 2026 (FY2026) earnings are expected to grow four per cent year-on-year, mitigating the lower sales volume and Malaysia Reference Price (MRP), while FY2027 earnings are forecast to rise 16 per cent year-on-year (y-o-y) on higher MRP and a volume rebound.
RHB Investment Bank Bhd (RHB IB) said the company’s FY2026 earnings are expected to recover, supported by higher regulated tariffs, despite the company reporting lower earnings of 17 per cent y-o-y in the first-half of FY2026 (1HFY2026)
“We look forward to a stronger 2HFY2026, as GMB will benefit from a higher MRP. The company’s shipping division earns a fixed margin on MRP, which tracks the rising Brent crude oil price,” it said in a note.
It estimated that the MRP would increase nine per cent quarter-on-quarter in 3QFY2026, noting that the MRP had already risen 36 per cent to RM43.70 per million British thermal units (mmbtu) from its recent low in March.
However, RHB IB said GMB’s 1HFY2026 earnings were in line with expectations, with GMB reporting RM73 million in earnings in 2Q2026, reflecting a 22 per cent decrease on a sequential basis.
“This was on the back of flattish revenue. The main reason for the lower earnings was its higher operating expenses.
“Nevertheless, this was mitigated by a six per cent increase in the MRP, which determines the gas sales price,” it said.
Meanwhile, Kenanga Investment Bank Bhd (Kenanga IB) said GMB earnings are expected to recover further in 2HFY26 as sales volume gradually picks up.
“We anticipate a modest recovery in 2HFY2026 as gas volume gains further momentum, albeit at a slower pace than initially anticipated. Sustained volume growth should nevertheless support the earnings base and back a decent dividend yield,” it said.
The investment bank said GMB 1HFY2026 results came in below expectations, with core profit of RM165.4 million accounting for 41 per cent of its full-year forecast and market consensus.
Kenanga IB said the weaker 1HFY2026 performance was mainly due to sluggish volume recovery and persistently high operating expenses, and subsequently cut its FY2026 and FY2027 net profit estimates by eight per cent and four per cent, respectively. – BERNAMA
