Gas Malaysia Berhad Q1 2025: Navigating a Shifting Landscape
Greetings, fellow Malaysian investors! Today, we’re diving deep into the latest financial report from Gas Malaysia Berhad (GMB) for the first quarter ended 31 March 2025. This report offers a crucial glimpse into the company’s performance amidst evolving market dynamics. While the numbers reflect a slight dip in revenue and profit compared to the previous year, GMB continues to demonstrate resilience and a clear strategic path forward. What’s particularly noteworthy is the recent announcement of a final dividend for FY2024, a testament to the company’s commitment to shareholder returns. Let’s unwrap the details and see what’s truly shaping GMB’s journey.
Q1 2025 Performance: A Closer Look at the Numbers
Gas Malaysia Berhad’s first quarter results for 2025 show a mixed bag, with revenue and profit experiencing a slight decline compared to the same period last year. However, it’s essential to understand the underlying factors driving these changes.
Revenue Performance
The Group’s revenue for Q1 2025 stood at RM1,844.7 million, a 1.5% decrease from RM1,872.6 million in the corresponding quarter of 2024. This was primarily influenced by a lower average natural gas selling price. However, this impact was partially offset by a higher volume of natural gas sold and an increase in tolling fees, showcasing the robustness of its core operations despite pricing pressures.
Q1 2025 Revenue
RM1,844,665,000
Q1 2024 Revenue
RM1,872,612,000
Profitability Snapshot
Despite the revenue dip, GMB maintained a healthy gross profit, although it saw a minor reduction. The profit before zakat and taxation for Q1 2025 was RM132.9 million, a 2.7% decrease from RM136.6 million in Q1 2024. This was mainly due to a lower average natural gas contribution margin, coupled with higher administrative expenses and finance costs. On the bright side, higher natural gas sales volume and increased contributions from joint venture companies helped mitigate some of these headwinds.
The net profit for the financial period followed a similar trend, coming in at RM100.1 million, a 2.4% decrease from RM102.6 million in the previous year’s first quarter.
Q1 2025 Profit Before Zakat & Taxation
RM132,893,000
Q1 2024 Profit Before Zakat & Taxation
RM136,586,000
Q1 2025 Net Profit
RM100,137,000
Q1 2024 Net Profit
RM102,634,000
Earnings Per Share (EPS)
Reflecting the overall profit trend, GMB’s basic and diluted earnings per share for Q1 2025 were 7.80 sen, slightly down from 7.99 sen in Q1 2024. The company has no dilutive potential ordinary shares, hence basic and diluted EPS are the same.
Q1 2025 EPS
7.80 sen
Q1 2024 EPS
7.99 sen
Financial Position: A Stable Foundation
Looking at the balance sheet as at 31 March 2025, GMB’s total assets stood at RM3,599.5 million, a slight decrease from RM3,674.3 million at the end of 2024. Total equity also saw a reduction to RM1,350.1 million from RM1,506.2 million, primarily due to dividend payments during the quarter. Total liabilities increased to RM2,249.4 million from RM2,168.2 million, mainly influenced by the dividend payable. The net assets per share attributable to ordinary equity holders decreased to 105.15 sen from 117.30 sen.
Cash and cash equivalents at the end of the period were RM732.8 million, down from RM744.0 million at the beginning of the period. While operating cash flows were lower this quarter compared to the same period last year, the company continues to manage its financing activities, including the issuance and repayment of Islamic Commercial Papers.
Key Financial Highlights Table
| Financial Metric (RM’000) | Q1 2025 | Q1 2024 | Change (%) |
|---|---|---|---|
| Revenue | 1,844,665 | 1,872,612 | -1.5% |
| Gross Profit | 152,287 | 154,615 | -1.5% |
| Profit Before Zakat & Taxation | 132,893 | 136,586 | -2.7% |
| Net Profit | 100,137 | 102,634 | -2.4% |
| Earnings Per Share (Sen) | 7.80 | 7.99 | -2.4% |
| Total Assets (as at period end) | 3,599,505 | 3,338,843 (Q1 2024) | +7.8% |
| Total Equity (as at period end) | 1,350,116 | 1,250,638 (Q1 2024) | +7.9% |
Note: Total assets and equity comparison is against the corresponding quarter end of the previous year (31 March 2024) for a more relevant period-on-period balance sheet view.
Navigating Challenges and Future Prospects
The Malaysian economy is projected to maintain its positive momentum in 2025, driven by resilient domestic demand. This provides a generally supportive backdrop for businesses like Gas Malaysia. However, the global landscape presents a more cautious picture, with escalating trade tensions and heightened uncertainty potentially impacting international economic activity. The International Monetary Fund’s revised downward forecast for Malaysia’s GDP growth from 4.7% to 4.1% reflects these global concerns.
Despite these broader challenges and a recent fire incident in Putra Heights, Gas Malaysia’s management remains steadfast in its commitment. The company is actively implementing prudent measures to enhance operational efficiency, sustain its competitive edge, and pursue strategic growth opportunities. These initiatives are crucial for navigating the complexities of the current market.
The Board expresses confidence that, with these strategies in place, the Group is well-positioned to deliver a satisfactory performance for the financial year 2025, while maintaining a cautious outlook in light of ongoing market uncertainties.
Shareholder Returns: A Positive Note
For shareholders, the report brings good news on the dividend front. Gas Malaysia’s Directors declared a final dividend of 10.28 sen per share for the financial year ended 31 December 2024, amounting to RM132.0 million. This dividend is scheduled to be paid on 26 June 2025, reflecting the company’s consistent effort to return value to its investors.
Summary and
Gas Malaysia Berhad’s Q1 2025 results illustrate a company adapting to a dynamic environment. While facing headwinds from lower natural gas selling prices and increased costs, its ability to mitigate these impacts through higher sales volume and joint venture contributions demonstrates underlying operational strength. The commitment to strategic initiatives aimed at efficiency and growth, coupled with a continued focus on shareholder returns through dividends, paints a picture of a well-managed entity.
However, investors should keep an eye on several key factors:
- Natural Gas Pricing: Fluctuations in natural gas selling prices and contribution margins will continue to directly impact revenue and profitability.
- Operational Efficiency: The success of the company’s prudent measures to enhance efficiency will be critical in managing costs and sustaining competitiveness.
- Global Economic Headwinds: Broader macroeconomic uncertainties and global trade tensions could indirectly affect industrial demand for natural gas.
- Joint Venture Contributions: The continued positive performance of its joint ventures will be an important offset to core business pressures.
Overall, Gas Malaysia Berhad appears to be prudently managing its operations amidst current challenges, focusing on long-term stability and value creation. The dividend announcement is a positive signal, reinforcing confidence in its financial health and commitment to shareholders.
What are your thoughts on Gas Malaysia Berhad’s Q1 2025 performance? Do you believe the company can maintain its strategic momentum and deliver a satisfactory performance for the full year 2025 despite the prevailing uncertainties? Share your insights in the comments section below!
