Environment segment boosts Ranhill’s Q1 bottom line

PETALING JAYA: Ranhill Holdings Bhd saw its net profit rise 15.6% in the first quarter ended March 31, 2018 to RM18.14 million from RM15.69 million on the back of increased revenue from its environment segment.

Revenue went up 2.4% to RM360.29 million from RM351.95 million.

Ranhill aims to own and operate 1,000MW power plants that can deliver clean energy and 3,000 million litres of water per day day (MLD) in addition to a wastewater treatment capacity of 700 MLD (internationally) by year 2022.

It expects growth in the local environment segment to be supported by the increasing demand for water in Johor, especially with the development of new housing and industrial areas in the state.

“Studies on alternative potential water resources conducted by our local environment segment are expected to contribute additional revenue and profit to the group especially exploration of ground water sources in south and southeast areas of Johor.”

Domestically, Ranhill’s capacity is expected to grow at 3% to 4% annually.

In a separate filing, Ranhill said its subsidiary SAJ Ranhill Sdn Bhd and Indah Water Konsortium Sdn Bhd will be entering into a joint billing agreement upon approval from the Energy, Green Technology and Water Ministry.

The two had previously entered into a memorandum of understanding to embark on a joint review for the joint billing exercise for water supply and sewerage services in Johor.

Ranhill fell 1.42% to 69.5 sen with 854,300 shares done yesterday.