Malakoff second quarter profit retreats 20%

PETALING JAYA: Independent power producer Malakoff Corp Bhd registered a 20.3% lower net profit of RM103.26mil in the second quarter ended June 30 compared to the corresponding period last year.

The lower net profit was mainly attributed to lower contributions from Tanjung Bin Energy’s power plant during the quarter.

Malakoff also recognised an insurance claim on rotor replacement during the corresponding quarter last year.

In a Bursa Malaysia filing yesterday, Malakoff guided that results for the financial year ending Dec 31, 2017 (FY17) would be affected by the lower capacity payment in the new revised Segari Energy Ventures Sdn Bhd’s power purchase agreement, which commenced July 1.

“The group is focusing on enhancing efficiencies throughout its operations and hence expects the results to remain positive for FY17,” it said.

Going forward, Malakoff will continue with its strategic initiatives to secure growth opportunities in the power sector, as well as to broaden its earnings base in complementary business sectors. Its revenue for the quarter rose 13.6% to RM1.73bil on the back of the higher applicable coal price and higher capacity factor registered by Tanjung Bin Power’s power plant, which was partly offset by lower revenue from the power plant due to outages during the quarter.

For the first half of FY17, Malakoff’s net profit fell 5.4% to RM202.05mil from RM213.73mil in the previous corresponding period, while its revenue rose 22.4% to RM3.51bil from RM2.87bil. The increase in revenue was mainly due to higher applicable coal prices and higher capacity factor registered by Tanjung Bin Energy’s power plant.