Malakoff sees Tanjung Bin recovery lifting 2Q income

The firm is poised to benefit from the nation’s 2% increase in power demand

By ALIFAH ZAINUDDIN / Pic By MUHD AMIN NAHARUL

Malakoff Corp Bhd is expected to benefit from the positive recovery of its 1,000MW Tanjung Bin Energy power plant that would boost the group’s performance for the second quarter (2Q) of 2018 onwards.

The capacity payment of the RM6.7 billion power generating facility is anticipated to normalise in the upcoming quarter and contribute positively to the company’s earnings for the year.

The country’s largest independent power producer is poised to benefit from the nation’s 2% increase in power demand, while it expands further into renewable energy.

Earlier in January, Malakoff entered into an agreement with Touch Meccanica Sdn Bhd to co-develop a large-scale solar photovoltaic and small hydro power projects in Pahang.

The group also expects to see positive contributions from its overseas investments in the Middle East and explore further opportunities in Asean, as well as in North Africa.

For its 1Q ended March 31, 2018, Malakoff’s net profit fell 46.4% to RM52.91 million from RM98.79 million last year, mainly due to lower contribution from Segari Energy Ventures Sdn Bhd and lower fuel margin recorded by its two Tanjung Bin power plants in Johor.

However, these were offset by cost-cutting measures, as well as lower depreciation and finance costs.

Revenue for the period also declined 11.3% to RM1.6 billion against RM1.78 billion a year ago.

Moving forward, Malakoff will continue to improve its operational efficiency and effectiveness, in addition to positive contributions from its subsidiaries.

In a separate filing, Malakoff announced the appointment of Sharifah Sofia Syed Mokhtar Shah to its board of directors as a non-independent and non-ED.

The 24-year-old is the daughter of Tan Sri Syed Mokhtar Al-Bukhary, who is an indirect shareholder of Malakoff with a 37.7% stake through his share-holding in MMC Corp Bhd.

She was previously the special officer to the group CEO of Pos Malaysia Bhd, and was an external consultant for the Bill & Melinda Gates Foundation. Apart from her role in Malakoff, she also holds directorships in DRB-Hicom Bhd and Pos Malaysia.

The group also announced the resignation of Kohei Hirao, 64, as a non-independent and non-ED due to business reasons.

The Japanese national was appointed to the board of Malakoff in January 2016 and currently serves as a special senior advisor to the Albukhary Group of Cos.

He previously held various positions in Tokyo-based Sumitomo Corp, including as advisor to the group, before he resigned on June 30, 2016.

Malakoff’s shares ended three sen lower to close at 86 sen. The company has a market capitalisation of RM4.22 billion.