Malakoff’s first quarter profit down to RM67.37 million

KUALA LUMPUR: Independent power producer, Malakoff Corporation Bhd’s net profit fell to RM67.37 million in the first quarter ended March 31, 2018, from RM115.41 million recorded in the same period last year.

Revenue for the quarter also decreased 10 per cent, year-onyear, (y-o-y) to RM1.6 billion from RM1.78 billion previously.

In a filing with Bursa Malaysia yesterday, Malakoff attributed its performance to lower capacity payment from Segari Energy Ventures Sdn Bhd, following the tariff reduction under the extended Power Purchase Agreement (PPA) effective July 1, 2017.

Earnings per share declined to 1.06 sen from 1.98 sen previously.

On prospects, Malakoff said its overall outlook for 2018 remained positive, in line with the expected two per cent growth rate per annum in the nation’s power demand.

The group anticipated to benefit from the positive recovery of the Tanjung Bin Energy power plant which was expected to receive normalised capacity payment from the second quarter 2018 onwards.

It would also be intensifying efforts to expand into renewable energy in line with the government’s aspiration to reduce carbon emissions by 40 per cent in 2050.

“The group expects to see positive contributions from overseas investments, namely Shuaibah in Saudi Arabia and Hidd in Bahrain, and leverage on experience and expertise in power and water projects to explore further opportunities overseas, particularly in high growth regions such as ASEAN and the Middle East and North Africa,” it added. — Bernama