KUALA LUMPUR, May 20 -- Ranhill Utilities Bhd continues to seek out viable opportunities to expand its water supply operations in Malaysia based on its “asset-light” model to ensure recurring and stable cash flow .
The group is particularly focused on its core strength of efficient non-revenue water (NRW) management services via Ranhill Water Services Sdn Bhd (RWS), it said in a statement.
Ranhill said RWS had saved over 500 million litres per day (MLD) of treated water through NRW contracts over the years and had significantly reduced NRW in Johor to 24.11 per cent as at Dec 31, 2019, the lowest NRW level nationwide.
“Due to its proven track record of tangible results, RWS is in its fifth successive NRW project in the state of Johor, secured through a competitive open tender process since 2011.
“Apart from this, Ranhill Water Technologies Sdn Bhd (RWT) has completed the local sewage treatment plant contract in Malaysia for the Forest City project,” it said, adding that this would provide the group with a competitive edge to bid for similar contracts not only with Forest City but other property developers in Malaysia.
In addition, it said RWT had secured the engineering, procurement and construction contract for a 20 MLD water treatment plant using the Dissolved Air Flotation process in Layang, Johor, which is scheduled to be completed by September 2020.
In its power sector, the group plans to start negotiations with the government for the power purchase agreement extension of the existing concession for its Teluk Salut Power Plant, which currently ends in 2029.
Meanwhile, Ranhill’s net profit eased to RM18.19 million for the first quarter ended March 31, 2020, from RM21.37 million in the same period last year.
Revenue fell to RM368.28 million from RM405.05 million previously due mainly to lower water consumption volume and lower contribution from developers amounting to RM10 million in Ranhill SAJ Sdn Bhd and lower engineering procurement and construction revenue from RWT of RM11 million.
Moving forward, Ranhill group president and chief executive, Tan Sri Hamdan Mohamad, said the demanding operating landscape was expected to persist, as COVID-19 continued to have global repercussions.
“While the pandemic is showing signs of abating in Malaysia and the Conditional Movement Control Order is enabling business activities to resume, we remain focused on prudent management of our businesses to ensure recurring and stable cash flow to support our operations,” he added.
Malaysia National News Agency
No.28 Jalan BERNAMA
Off Jalan Tun Razak
50400 Kuala Lumpur
Tel : +603-2693 9933 (General Line)
Email : firstname.lastname@example.org