Malakoff posts lower Q4 net profit, proposes 3.7 sen dividend

PETALING JAYA: Malakoff Corp Bhd’s net profit for the fourth quarter ended Dec 31, 2017 fell 51.5% to RM43.72 million from RM90.23 million in the previous corresponding period, dragged down by lower capacity payment at Segari Energy Ventures Sdn Bhd’s gas plant following the revision of the power purchase agreement from July 1, 2017 as well as lower contribution from Tanjung Bin Energy Sdn Bhd caused by the unscheduled plant outages.

Revenue, however, rose 4.7% from RM1.71 billion to RM1.79 billion.

The group has proposed to declare a final dividend of 3.7 sen per shares for the quarter under review.

Malakoff’s full-year net profit declined 12.8% from RM355.46 million to RM309.95 million on the back of a 16.9% increase in revenue from RM6.1 billion to RM7.13 billion.

Looking ahead, Malakoff said it is well positioned to benefit from the projected demand with the successful commissioning of the Tanjung Bin Energy thermal power plant in March 2016, which added 1,000MW to the group’s portfolio of power-generation assets in Malaysia, increasing its net generation capacity to 6,346MW.

Malakoff said it will continue to pursue growth opportunities locally to expand its generation capacity especially in renewable energy.

“The group will also continue to explore opportunistic investment overseas to complement its local generation business. In the meantime, the group will continue in its efforts to improve its operational efficiency and effectiveness especially in relation to improving the plants availability and performance, as well as to strengthen its cost management aspect of the business in view of the more competitive landscape of the energy and power industry going forward.”

On Bursa Malaysia yesterday, Malakoff fell 2.5 sen or 2.7% to 91 sen, on volume of 8.81 million shares.