Ranhill posts Rm18.19mil profit in Q1

PETALING JAYA: Ranhill Utilities Bhd’s net profit for the first quarter ended March 2020 came in 14.87% lower year-on-year (y-o-y) at Rm18.19mil.

This was on the back of a quarterly revenue of Rm368.28mil, which was 9.08% lower y-o-y.

The reduction in both net profit and revenue was due to reduced water consumption volume and lesser contribution from developers amounting to Rm10mil in Ranhill SAJ Sdn Bhd, lower engineering, procurement and construction revenue from Ranhill Water Technology of Rm11mil and a reduction in power tariff of Rm16mil.

Group president and chief executive officer Tan Sri Hamdan Mohamad said it was encouraging to note that the group was able to turn in sustained earnings despite the challenging environment brought about by the coronavirus (Covid-19) pandemic.

“Our resilience is underpinned by the fact that our core businesses are in the environment and power sectors, allowing for continuity of operations and services during the movement control order (MCO) period.

“The demanding landscape is expected to persist, as Covid-19 continues to have global repercussions. While the pandemic is showing signs of abating in Malaysia and the conditional MCO is enabling business activities to resume, the group remains focused on prudent management of our businesses to ensure recurring and stable cashflow to support our operations,” he said in a statement.

To this end, Ranhill continues to seek out viable opportunities to expand its water supply operations in Malaysia, based on the asset light model and its achievement in operating water supply services in Johor for over 20 years since 1999.