Malakoff 4Q profit rises 188% to RM85m

Revenue for the 3-month period also rose 5.2% to RM1.9b from RM1.8b recorded previously


Malakoff Corp Bhd recorded a net profit of RM85.48 million for the fourth quarter ended Dec 31, 2018 (4Q), a 187.7% increase from RM29.7 million registered in the previous corresponding quarter.

The higher profit was due to improved contribution from the group’s coal plant in Tanjung Bin, Malakoff said in a filing to Bursa Malaysia recently.

Revenue for the three-month period also rose 5.2% to RM1.89 billion from RM1.79 billion previously.

Malakoff noted that besides the Tanjung Bin plant, other factors that contributed to the performance were lower depreciation of inspection costs, reduced operation and maintenance costs, lower net finance costs and higher contributions from associates investments.

For the full year 2018, Malakoff registered a net profit of RM274.43 million, lower than the RM295.93 million recorded in 2017.

Revenue for the 12 months, however, rose 3.1% to RM7.35 billion from RM7.13 billion previously.

The group stated that the profit decrease was due to lower capacity payment recorded by Segari Energy Ventures Sdn Bhd (SEV), given the tariff reduction and absence of Tanjung Bin Power Sdn Bhd’s compensation payment received from the dispute settlement with Japan’s IHI Corp over its boiler failure.

Revenue, meanwhile, increased due to the higher energy payment recorded by both its coal plants. The hike in natural gas tariff, however, was partially offset by SEV’s lower capacity payment.

In a statement, Malakoff CEO Datuk Ahmad Fuaad Mohd Kenali (picture) said the group will continue to focus on improving the reliability and efficiency of its assets, especially Tanjung Bin Energy’s power plant.

“The plant is scheduled for maintenance and rectification works in the 1Q and 2Q of this year, to address and resolve its operational challenges.

“In line with the government’s greater push for renewable energy (RE), Malakoff is currently exploring opportunities in the RE sector, particularly on large-scale solar (LSS), hydro, biogas and wasteto- energy.

“The group will also be participating in the government’s open tender for the third round of the 500MW LSS3 project which was announced recently,” he said.