Malakoff FY18 net profit falls to RM274.43 mln

KUALA LUMPUR: Malakoff Corp Bhd’s net profit for the financial ended Dec 31, 2018 (FY18) fell to RM274.43 million compared with RM295.93 million in the same period a year earlier.

Thegroupsaidthelowerearnings for the year were primarily attributed to lower capacity payment recorded by Segari Energy Ventures Sdn Bhd (SEV), given the reduction in tariff under the extended power purchase agreement (PPA).

“There was also the absence of the Tanjung Bin Power Sdn Bhd (TBP) compensation payment received from the settlement of the dispute with IHI Corporation over TBP’s boiler failure recorded in the preceding year,” it said.

Meanwhile, revenue for the period increased slightly to RM7.35 billion from RM7.13 billion a year earlier, mainly due to the higher energy payment recorded from TBP and Tanjung Bin Energy Sdn Bhd (TBE) coal plants on the back of higher applicable coal price.

“Higher revenue was also contributed by SEV, given the increase in natural gas tariff under the extended PPA.

“However, these were partially offset by SEV’s lower capacity payment following a reduction in tariff under the extended PPA,” it said in a filing with Bursa Malaysia today.

Moving forward, Malakoff said it would continue to intensify its efforts to improve competitiveness through cost management and operational excellence to enhance its resilience and sustainability.

“In line with the government’s greater push for renewable energy, Malakoff is currently exploring opportunities in the renewable energy sector, particularly on hydro, biogas and waste-toenergy,” it said.

Malakoff said it would be participating in the government’s open tender for the third round of the 500MW Large Scale Solar projects.

“We expect performance to remain satisfactory for the financial year ending Dec 31, 2019,” it added. — Bernama