Malakoff profit loses steam in second quarter

PETALING JAYA: Malakoff Corp Bhd’s net profit fell 20.3% to RM103.27 million for the second quarter ended June 30, 2017 against RM129.63 million in the previous corresponding period, due to lower contributions from subsidiary Tanjung Bin Energy’s power plant and the absence of insurance claim on rotor replacement.

Revenue, however, expanded 13.6% from RM1.53 billion to RM1.73 billion, driven by higher applicable coal price and higher capacity factor registered by Tanjung Bin Power’s plant.

The group has proposed to declare an interim dividend of 2.5 sen per share for the quarter under review.

In a filing with the stock exchange, Malakoff said the results for the financial year ending Dec 31, 2017 will be affected by the lower capacity payment in the new revised Segari Energy Ventures Sdn Bhd’s power purchase agreement commencing July 1, 2017.

“The group 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 for the future. The group is also focusing on enhancing efficiencies throughout its operations and hence expects the results to remain positive for the financial year ending Dec 31, 2017,” it noted.

For the first half of the year, Malakoff’s net profit fell 5.5% from RM213.73 million to RM202.05 million on the back of a 22.5% rise in revenue to RM3.52 billion from RM2.87 billion.

Malakoff’s share price rose one sen to close at RM1.02 yesterday on 15.94 million shares done, giving it a market capitalisation of RM5.1 billion.