This article first appeared in The Edge Malaysia Weekly on October 5, 2026 - October 11, 2026

Gas Malaysia Bhd (KL:GASMSIA) continued its unbeaten run since 2019 in providing industry-leading return on equity, as it demonstrated a resilient performance against the backdrop of an external slowdown in the last financial year.

This year, it clinched The Edge Billion Ringgit Club (BRC) award for Highest return on equity (ROE) over three years in the utilities sector for the eighth consecutive year. It was also the 12th BRC win since 2019 for the company that retails natural gas and operates the gas distribution pipeline network in Peninsular Malaysia.

In the latest BRC evaluation period, Gas Malaysia recorded an adjusted weighted ROE of 27.5% for the three years from FY2023 to FY2025, according to BRC data. Its annual ROE stood at 29% in FY2023, 30.7% in FY2024 and 24.9% in FY2025.

The company rewarded shareholders with a dividend per share of 23.8 sen for FY2025, amounting to RM305.6 million. This represented a payout ratio of 80% and marked its fourth consecutive year of dividends above 20 sen per share.

The latest win follows a slightly softer FY2025, as Gas Malaysia’s net profit eased 13.5% to its three-year low of RM381.7 million on the back of softer natural gas demand after a record RM441.4 million in FY2024. Revenue fell 8.8% year on year to RM7.34 billion in FY2025.

Despite the softer earnings, chairman Tan Sri Wan Zulkiflee Wan Ariffin said Gas Malaysia remains committed to balancing shareholder returns with the need to retain sufficient resources for the group’s long-term growth initiatives.

Indeed, Gas Malaysia has made its move into regasification infrastructure official, one that could cement its position as the nation’s second regasification terminal operator and a major gas infrastructure player.

The group is leading the development of a liquefied natural gas (LNG) regasification terminal in Yan, Kedah, together with Japan-based Tokyo Gas Co Ltd and the Netherlands-based VTTI BV, meant to receive imported LNG to supplement domestic gas supply. Estimated to cost up to RM3 billion, the floating storage and regasification unit will have a capacity of up to six million tonnes per annum. Gas Malaysia holds 70% equity interest, with its two partners having a 15% stake each.

The expansion plan was certainly welcomed by shareholders who believe in Gas Malaysia’s execution capabilities. The project announcement came as its adjusted share price rose to as high as RM6 as at March 31, 2026, representing a three-year shareholder return compound annual growth rate of 32.4%, compared with just RM2.59 three years earlier, according to BRC data.

The venture also represents the positive long-term prospects of the wider natural gas industry, as the nation is projected to require more natural gas as demand rises from new gas-fired power plants and electricity demand jumps with data centre expansion and new industrial developments.

Concurrent with its new venture, Gas Malaysia continued to expand its core infrastructure, adding 153km to its Natural Gas Distribution System network in 2025 to take it past 3,000km, with more than 1,000 industrial customers served by the network.

The company also cemented its retail presence, retaining more than 80% of the gas retail market, and secured all new-to-market customers during the year even as industry liberalisation becomes more familiar for new entrants.

Gas Malaysia aims to expand its distribution network by about 30% to 4,000km by 2032, while broadening its presence in low-carbon gas production and moving up the value chain to support the chemicals and advanced materials segments in line with GM32, its 10-year strategic plan.

The opening up of the gas industry certainly means the operating landscape will change rapidly compared with the previous decade. For Gas Malaysia, balancing its core business and new growth engines will be crucial for it to continue generating great value for shareholders as it has done over the years.

Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's App Store and Android's Google Play.