Malakoff sells terminal stake for RM90m


Malakoff Corp Bhd has accepted Integrax Bhd’s offer to buy its 20% stake in Lekir Bulk Terminal Sdn Bhd (LBTSB) for RM90 million.

In a statement to Bursa Malaysia yesterday, Malakoff noted Integrax, a Tenaga Nasional Bhd wholly owned subsidiary, made the offer to Tuah Utama Sdn Bhd (TUSB), a wholly owned subsidiary of Malakoff, which holds the stake in the terminal built to handle coal for the power generation facility in Manjung, Perak.

The 20% stake will be disposed of by TUSB to Pelabuhan Lumut Sdn Bhd, a wholly owned subsidiary of Integrax, which also owns the remaining 80% of LBTSB.

“The proposed disposal is part of Malakoff’s efforts to rationalise its investments to focus on higher growth areas and, at the same time, enable the unlocking of the value of its investment in LBTSB, a non-core business of the group, at a reasonable price,” Malakoff said in the filing.

The proposed disposal, based on the purchase price, will result in an exceptional gain of RM55.3 million for the independent power producer.

The company intends to utilise the cash proceeds to fund its future investments, as well as meet working capital requirements.

Malakoff’s revenue rose 12% year-on-year (YoY) to RM1.94 billion in the second quarter ended June 30, 2018 (2Q18), while net profit declined to RM52.55 million for the period from the RM103.27 million achieved in the same quarter the year before.

The higher revenue was primarily due to higher energy payments recorded from Tanjung Bin Energy Sdn Bhd and Tanjung Bin Power Sdn Bhd, on the back of higher applicable coal prices, as well as from Segari Energy Venture Sdn Bhd following the increase in tariff of natural gas price under the extended power purchase agreement (PPA).

Pretax profit fell 8% for the period to RM140.3 million from RM153.1 million in the previous quarter due to lower contribution from Segari Energy Venture following the reduction in tariff under the extended PPA, along with the lower fuel margin recorded at Tanjung Bin Power and Tanjung Bin Energy, though these were partially moderated by lower overall operating costs.

The group has proposed a single interim dividend of 2.1 sen per ordinary share for the quarter, to be paid out on Oct 11, 2018.

“Strong electricity demand from the industrial and domestic sectors, as well as enhanced operational efficiencies, will remain the catalysts for the group’s earnings.

“The group will also continue to focus on improving the performance and reliability of its assets,” Malakoff CEO Datuk Ahmad Fuaad Kenali said.

He added that in line with the government’s vision to increase renewable energy (RE) in the nation’s energy mix, the group “aspires to grow its presence in the RE space domestically within the next five years”.