Kuala lumpur: Share prices of Gas Malaysia Bhd experienced a decline in early trade on Friday following the company’s announcement of decreased net profit and revenue for the third quarter (3Q) ending September 30, 2025. The downturn was attributed to lower natural gas sales volumes and reduced average profit margins.

According to BERNAMA News Agency, the weaker earnings were further exacerbated by increased administrative expenses, rising finance costs, and a reduced contribution from joint ventures. By 10:35 am, the company’s shares had fallen by five sen to RM4.39, with 115,600 shares being traded.

Kenanga Investment Bank Bhd highlighted that sales volumes, which had slightly dipped in the second quarter due to a temporary gas curtailment following the Putra Heights fire, began to recover in the third quarter. The bank anticipates that these volumes will continue to rise into the fourth quarter. Despite this, Kenanga warned that narrower margin spreads from contract renewals in January 2025 could continue to impact profitability. However, with normalized gas volumes expected in the second half of 2025, the company’s attractive dividend yield is likely to be supported.

Additionally, Kenanga Investment Bank Bhd raised its terminal growth rate assumption for Gas Malaysia to 2.5 percent from 2.0 percent, based on expectations of strong gas demand growth by 2030. The bank expressed a positive outlook on Gas Malaysia due to its strong market position as a key natural gas retailer in Malaysia, its robust earnings visibility underpinned by three-year customer contracts, and strong free cash flow generation, which supports a dividend yield of over 5.0 percent. Nevertheless, Kenanga maintained a market perform rating for the company, indicating that these strengths are already reflected in the current share price.