MALAKOFF NETS RM98.8M PROFIT IN Q1

Higher fuel margin, bigger contribution from associates contribute to earnings

MALAKOFF Corp Bhd has registered a net profit of RM98.79 million in the first quarter ended March this year, 17.5 per cent higher than RM84.1 million in the same period a year ago, mainly due to higher fuel margin and higher contribution from its associates.

Despite the higher net profit in the last quarter, the company is still on the lookout for more growth opportunities in the power sector with broadened earnings base.

“The group is continuing with its strategic initiatives to secure growth opportunities in the power sector as well as to broaden its earnings base in complementary business sectors for the future.

“In addition, the group is also focusing on enhancing efficiencies throughout its operations and expects the results to remain positive for the financial year ending December 31 this year,” said the company in its filing to Bursa Malaysia.

Malakoff said this was due to the expiry of the existing Segari Energy Ventures Sdn Bhd’s power purchase agreement (PPA)next month, which is expected to affect its the financial year ending December this year.

“The new Segari Energy’s PPA, which will take effect upon expiration of the existing PPA, stipulates lower levelised tariffs”.

Malakoff’s revenue for the quarter was RM1.8 billion, higher than RM1.3 billion in the same period a year ago.

The independent power producer attributed the higher revenue to three-month contribution from Tanjung Bin Energy Sdn Bhd during the current quarter as compared with only 10 days of revenue contribution during the corresponding quarter, following the commencement of Tanjung Bin’s operation on March 21 last year.