KUALA LUMPUR, May 20 -- Malakoff Corp Bhd’s first-quarter (Q1) net profit rose by a third to RM89.18 million from RM67.0 million in the same period last year.
The power and water producer attributed the improved bottom-line for the January-March 2020 period mainly to contribution from the newly acquired subsidiary Alam Flora Sdn Bhd, lower operations and maintenance costs and higher contributions from investments in associates following the acquisition of 12 per cent additional interest in Shuaibah Independent Water and Power Plant in Saudi Arabia last year.
In addition, there was absence of share of losses from 40 per cent-owned Kapar Energy Ventures Sdn Bhd (KEV) as a result of provisions made up to the carrying amount of investment in KEV as at Dec 31, 2019.
“These were partially offset by lower fuel margin recorded at Tanjung Bin Energy Sdn Bhd (TBE) impacted by the decline in applicable coal price, lower daily utilisation payment at Tanjung Bin Power Sdn Bhd (TBP) upon scheduled reduction in tariff under the existing purchase power agreement and absence of contribution from Malakoff Australia Pty Ltd following disposal of the group’s investment in it,” the group said in a filing with Bursa Malaysia today.
While its net profit rose year-on-year, Malakoff’s revenue eased to RM1.77 billion for the quarter under review from RM2.01 billion previously.
This 11.6 per cent lower revenue was mainly due to lower energy payment recorded given the decline in applicable coal price at TBP and TBE as well as decrease in despatch factor at Segari Energy Ventures Sdn Bhd and Prai Power Sdn Bhd gas plants following scheduled outage maintenance works.
“However, these were partially moderated by revenue contribution from Alam Flora, the acquisition of which was completed on Dec 5, 2019,” it said.
On its prospects, the group said it would continue to seek opportunities to expand its renewable energy capacity such as the rooftop solar, mini hydro and biogas projects.
It said development activities for the recently awarded 2.4 megawatt (MW) biogas plant in Kota Tinggi, Johor, and the 55MW small hydro projects are progressing according to approved timelines.
“In addition to its ongoing solid waste management activities, Alam Flora has been actively involved in sanitisation and disinfection services around Kuala Lumpur, Putrajaya and Pahang as part of the government’s efforts to contain the spread of COVID-19.
“Alam Flora is actively exploring other sustainable projects including actively promoting awareness in e-waste collection and has set up two e-waste drop off points within the Klang Valley area,” it added.
Based on the foregoing, the group expected performance to remain satisfactory for this financial year ending Dec 31, 2020.
Malaysia National News Agency
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