Latest news with #GasMalaysiaBhd
The Star
27-05-2025
- Business
- The Star
GAS MALAYSIA PIONEERS NATION'S NATURAL GAS DISTRIBUTION
AS MALAYSIA navigates an increasingly dynamic energy landscape, Gas Malaysia Bhd , a member of the MMC Group, continues to strengthen its position as an industry leader by providing clean, safe and cost- effective energy solutions to the nation. Marking its 33rd anniversary, the group reflects on a legacy of achievements and commitment towards nation-building. In an exclusive feature with TheStar, Gas Malaysia president and group chief executive officer Ahmad Hashimi Abdul Manap shared insights on Gas Malaysia's transformative journey, its role in Malaysia's socio-economic progress, safety focus and commitment towards operational excellence. Contributing towards nation-building Over three decades, Gas Malaysia has made significant contributions towards nation-building efforts by enhancing energy accessibility and reliability. With an extensive natural gas distribution system (NGDS) network spanning close to 3,000km across Peninsular Malaysia and with Gas Malaysia's industrial customers accounting for approximately 99% of the group's total gas sales volume, the group has played a central role in meeting the nation's growing energy needs. 'Natural gas is by far the cleanest and one of the most efficient fossil fuels,' said Ahmad Hashimi. 'As a clean fuel alternative, natural gas emits the least amount of carbon dioxide and other harmful emissions into the air when combusted, compared with oil, coal and diesel. 'We have encouraged many businesses to adopt this cleaner energy option. 'In the early days, we adopted proactive marketing strategies to tap into industrial gas demand. 'We targeted factories emitting black smoke and those were an indicator that they were not utilising natural gas. 'We would then visit those factories and introduce natural gas as a cleaner, more cost-effective energy solution,' he elaborated. Growth potential Malaysia's natural gas industry exhibits growth potential, fuelled by rising industrial demand. Gas Malaysia is well-positioned to seize new opportunities, backed by its extensive gas infrastructure and presence across Peninsular Malaysia. To remain agile and forward-looking amidst these industry shifts, and in conjunction with the group's 30th anniversary, Gas Malaysia undertook a strategic realignment exercise in 2022. This realignment aimed to strengthen the group's organisational foundation and long-term competitiveness. As part of this initiative, Gas Malaysia introduced a new statement of purpose and mission statement and embraced a set of core values such as Professionalism, Reliability, Integrity, Teamwork and Innovation. This transition was further reinforced in the following year with the launch of the GM32 Strategy. Designed to unlock new opportunities and drive business expansion, the GM32 Strategy reflects the group's commitment to achieving its long-term business aspirations and delivering greater value to stakeholders. 'We have in place a 10-year strategic business plan, known as the GM32 Strategy, which is focused on reinforcing Gas Malaysia's core business, exploring new opportunities along the gas value chain and diversifying into cleaner energy solutions. 'The National Energy Transition Roadmap (NETR) emphasised the critical role of natural gas as a transitional fuel. Aligned with this aspiration, we are committed to expanding our NGDS network by an additional 800km over the next five years. 'This initiative, with an estimated investment of about RM1.2bil to RM1.4bil, reflects our continued support for the government's agenda as outlined in the NETR,' Ahmad Hashimi elaborated. The group's focus on customer-centricity and operational excellence remains central to its business growth. Backed by a competent workforce coupled with the culture transformation programme driven by the GM32 Strategy, Gas Malaysia continues to deliver value and strengthen its position. The group is also exploring new ventures, supported by the government's recognition of natural gas as a cleaner, reliable energy source. Commitment towards safety and operational excellence 'Safety is at the core of Gas Malaysia's operational philosophy. The company adheres to stringent regulatory standards to ensure safe natural gas delivery to its wide range of customers,' Ahmad Hashimi stated. Building on this commitment, Gas Malaysia ensures that its pipelines are constructed using high-grade materials such as high-carbon steel, supported by special protective coatings and cathodic protection systems to prevent corrosion. These pipelines are installed underground at secure depths and integrated with strategically positioned valves to enable rapid isolation during emergencies. Most importantly, all aspects of pipeline construction and commissioning undergo rigorous evaluation and approval by the Energy Commission, ensuring full compliance with the highest levels of safety standards. Elaborating on the robust safety and maintenance framework, Ahmad Hashimi stated, 'The safety and maintenance framework reflects our proactive maintenance strategy encompassing daily patrols, scheduled inspections and a comprehensive preventive maintenance programme executed by dedicated teams stationed at our three regional offices and nine branch offices across Peninsular Malaysia. 'These operational efforts are further bolstered by our Operations Control Centre at our head office, which operates round-the-clock and utilises the Supervisory Control and Data Acquisition (Scada) system to facilitate real-time monitoring of pipeline pressure and early detection of potential leaks. 'An essential public safety measure is the integration of mercaptan, a distinctive odourant added to the gas, which allows for early leak detection through smell, thereby strengthening our ability to safeguard communities and prevent incidents.' Gas Malaysia also places strong emphasis on community engagement and awareness to enhance pipeline safety. Signage and markers are prominently displayed along gas pipeline routes to alert the public and contractors of the underground infrastructure. 'These initiatives are further reinforced through safety seminars and dialogues with contractors, utility companies and local authorities, aimed at fostering a collective culture of vigilance and safety as well as preventing potential pipeline damage. 'Further reinforcing our operational excellence, Gas Malaysia has consistently maintained a gas supply reliability rate of approximately 99%, establishing our steadfast commitment to quality service delivery,' Ahmad Hashimi explained. Public safety: a shared responsibility Gas Malaysia believes that public participation plays a crucial role in maintaining safety. The group urges members of the public to remain vigilant and report any suspicious activities or abnormalities near its gas pipeline infrastructure. Should such incidents be observed, the public is advised to immediately contact Gas Malaysia's 24-hour emergency hotline at 1800-88-9119. Driving forward with purpose 'At Gas Malaysia, we are accustomed to the evolving energy landscape and recognise natural gas as a key transition fuel under the NETR. 'Moving forward, we will remain committed towards stakeholder engagement and long-term value creation. With strong fundamentals and the support of all our stakeholders, we are well-positioned to sustain growth and meet the nation's energy needs in years to come,' Ahmad Hashimi concluded.
The Star
27-05-2025
- Business
- The Star
Gas Malaysia's profitability to recover in second half
PETALING JAYA: Kenanga Research expects Gas Malaysia Bhd 's second quarter ending June 30, 2025 (2Q25), to remain soft due to temporary gas curtailment following the pipeline fire in Putra Heights, Selangor, last month, but its earnings should recover in the second half of this year (2H25). 'That said, narrower margin spreads from contract renewals in January this year could weigh on profitability. Nonetheless, normalised gas volumes in 2H25 should support its attractive dividend yield,' the research house said. It added that Gas Malaysia's 1Q25 results were in line, with core profit of RM100.1mil making up 25% and 24% of its and consensus full-year FY25 estimates, respectively. On a year-on-year basis, the company's core profit dipped slightly by 2% from RM102.3mil in 1Q24, while revenue fell 1% from RM1.87bil. Kenanga Research pointed out that earnings declined mainly due to a 19% drop in the Malaysia Reference Price for gas, despite a marginal 1% increase in demand. The research maintained its target price of RM3.90 and 'market perform' call on the stock. 'We like Gas Malaysia for its strong market position, being a key natural gas retailer in Malaysia, strong earnings visibility underpinned by its ability to retain customers, typically via three-year contracts, and strong free cash flow generation anchoring a dividend yield of over 5%. 'However, we believe the positives are already reflected in the price. Thus, we maintain our 'market perform' rating,' the research house added. Meanwhile, MIDF Research has revised Gas Malaysia earnings forecasts for this year to 2027 downwards by 8%, 3% and 1%, respectively, given its below-expectation results. The research house added that the company is expected to be dragged down by the expected lower average selling prices of natural gas and liquefied petroleum gas in tandem with the lower crude oil prices forecast for this year as well as the damage from the pipeline fire. The research house downgraded its call for Gas Malaysia to 'neutral' and the target price to RM4.48 from RM4.57. 'Nevertheless, we expect that this will be mitigated by higher demand for gas in tandem with higher industrial activity and increased consumer spending, as well as Gas Malaysia's recent launch of its biomethane injection station as part of its ongoing efforts to venture into renewables. 'The biomethane injection station in Kluang, Johor, is expected be operational in 2H25 and will receive biomethane from surrounding palm oil mills and offers a centralised solution for injecting biomethane into the natural gas grid. 'The facility will cater to the growing demand for renewable energy and green fuel in the midst of the energy transition,' the research house added.
New Straits Times
23-05-2025
- Business
- New Straits Times
Gas Malaysia's net profit down to RM100.14mil for 1Q25
KUALA LUMPUR: Gas Malaysia Bhd's net profit for the first quarter ended March 31 2025 (1Q FY2025) fell 1.5 per cent to RM100.14 million from RM102.63 million a year ago. Revenue decreased to RM1.84 billion from RM1.87 billion previously, due to lower average natural gas selling price, although this was partially offset by a higher volume of natural gas sold and a higher tolling fee, it said in a filing with Bursa Malaysia. "The group remains committed to implementing prudent measures to enhance operational efficiency, sustain competitiveness, and pursue strategic growth opportunities. "With these initiatives underway, the board is confident that the group is well-positioned to deliver a satisfactory performance for financial year 2025, while maintaining a cautious outlook in light of ongoing market uncertainties," it added.
