GASMSIA (5209)
Sector: Industrial products

Company Background:
Gas Malaysia operated & maintains 2,186km of gas pipeline across Peninsular Malaysia, supplying natural gas to 819 industrial customers, 935 commercial customers and 12,339 residential customers; and supplying LPG to 1,325 commercial and 22,959 residential customers. Customer base stands at 38,377. Supply to local customers only.
They purchase Natural Gas & LPG from Petronas. The lower natural gas price benefit them.
Gasmsia get RM700million Sukuk Murabahah programmes with a tenure of 10 years. This is for their expansion plans. Not much information was shared yet.
99.1% of volume is sold to industrial customers (819 of them).
The Government has prescribed the Incentive Based Regulation (“IBR”) framework which sets the Base Tariffs for a Regulatory Period of three years from January 2017 and allows changes in the gas costs to be passed through via the Gas Cost Pass Through (“GCPT”) mechanism every six months.
With this GCPT, GasMsia can pass cost to their consumers fairly.
Natural gas margin is not that high (7.4%) however it contributed the most of Gasmsia’s revenue (98%).
Industries that require natural gas - Steel & Ceramics, Rubber Glove, Oleo-chemicals (Refineries) & Consumer product sectors.