KUALA LUMPUR, Aug 22 — The share price of Gas Malaysia Bhd rose in the early session of Bursa Malaysia today despite posting a weaker net profit for the second quarter ended June 30, 2023.

As of 10.55am, Gas Malaysia increased four sen to RM3.06, with 224,300 shares traded.

In a note today, Kenanga Research expects softer quarters ahead as gas prices normalise.

However, Gas Malaysia’s earnings visibility remains strong, having locked in most of its customers in three-year contracts, it added.

Kenanga Research noted that Gas Malaysia had a net addition of six industrial accounts to 16 new accounts, partially offset by the non-renewal of 10 existing accounts during the first half of 2023.

"Two customers had asked for increased supply. Nonetheless, sales volume in the first half of the year fell 17 per cent to 72.7 million gigajoule (GJ) from 87.2 million GJ,” it added.

Meanwhile, Kenanga Research said glove manufacturers comprise 21 per cent of its customers for gas volume sold at 72.7 million GJ in the first half of 2023 compared to 23 per cent in the second half of 2022 and 30 per cent in the first half of 2022.

"We estimated that gas demand for the glove segment fell by 12 per cent quarter-on-quarter to 7.1 million GJ in the second quarter of 2023 from 8.1 million GJ,” it added. — Bernama